May 31, 2024
By Anjali Kochhar
China has made a big step toward adopting blockchain technology by announcing plans to integrate blockchain projects into 16 government agencies. The country’s commitment to investigating the possibilities of blockchain technology across multiple industries was demonstrated by the Central Cyberspace Affairs Commission’s circular, which outlined the ambitious initiative.
The circular disclosed that 16 departments, including the Central Cyberspace Affairs Commission, will undertake a series of pilots aimed at fostering national blockchain innovation and application. These pilots, spanning 164 different fields, will be conducted concurrently, reflecting the diverse range of applications deemed important by local and departmental recommendations.
According to the circular, provincial cyberspace offices and industry supervisory departments have been urged to prioritize and support the pilot projects. They are instructed to provide organizational and financial support, as well as guidance and coordination to ensure the successful implementation of the program within their respective regions.
“Provincial cyberspace offices and industry supervisory departments in all regions should attach great importance to the pilot work of national blockchain innovation and application, and strengthen the organization and coordination, policy and financial support, work guidance, and implementation of the pilot work in the region,” the circular stated.
Each selected region, designated as a pilot unit, is tasked with establishing robust leadership mechanisms and optimizing business processes to enhance efficiency and build a trusted system. Failure to adhere to the prescribed guidelines may result in the termination of the pilot qualification for non-compliant regions.
“Pilot units (regions) should be deployed in accordance with the ‘notice on organizing the declaration of blockchain innovation and application pilots,’ according to the work requirements of the national industry supervisory departments in various fields, combined with local realities, scientifically prepare the task book, and submit it to the central cyberspace administration and the national industry supervision department for review and approval,” the circular further directed.
Amidst the global debate surrounding cryptocurrency adoption, China has taken a different route by focusing on the development and adoption of its digital currency, the digital yuan. With over 10 million merchants already supporting digital yuan payments, the country has witnessed transactions worth $13 billion conducted using the Central Bank Digital Currency (CBDC). Despite the ban on cryptocurrencies, China’s digital yuan continues to gain traction, signaling a shift towards digital financial solutions.
The financial technology industry is set to undergo significant change as a result of China’s ongoing adoption of digital currencies and blockchain efforts. Blockchain technology has the potential to transform a number of industries, including finance, supply chain management, and government services. It also offers promise for promoting efficiency and creativity in the digital era.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
