The Chinese government is setting up a national blockchain innovation center in Beijing, focusing on industrial applications and major use cases of blockchain technology, especially in areas related to the Chinese economy. China’s Ministry of Science and Technology has approved the establishment of a blockchain research center called the National Blockchain Technology Innovation Center, state-run newspaper Beijing Daily reported on Wednesday.
The new blockchain center will be based in Beijing and will be led by the Beijing Research Institute of Blockchain and Edge Computing (BABEC), which is backed by the municipal government. The publication said the center will focus on developing blockchain-related technologies and their industrial applications, adding that it will also explore major use cases related to the Chinese economy and individual livelihoods.
Despite the country's anti-crypto stance and ongoing crackdown on crypto-related activities, China has been supportive of developments around blockchain technology. In 2019, Chinese President Xi Jinping stated that blockchain will “play an important role in the next round of technological innovation and industrial transformation.” He called for greater efforts to accelerate development in the field.
With Xi Jinping's support, many technology companies, startups and investors have poured into the blockchain space. Last July, the number of blockchain companies registered with the Cyberspace Administration of China (CAC) climbed to 1,821.
Hong Kong-based Jujube Technology, a founding member of China’s blockchain-based service network (BSN), launched a new project last month to implement stablecoins and central bank digital currencies (CBDCs) in cross-border payments. The BSN is supported by entities linked to the Chinese government, including the State Information Center (SIC) under the National Development and Reform Commission (NDRC) of China.
Meanwhile, China continues its anti-encryption stance. The People’s Bank of China (PBOC), a former advisor to the Chinese central bank, recently called on the Chinese government to re-evaluate its cryptocurrency ban. He warned that a permanent ban on crypto-related products could result in missed opportunities for technologies such as blockchain, which are "very valuable" to the regulated financial system.
