China Launches Blockchain Innovation Center: Get Ready for the Future!

• China is launching a National Blockchain Innovation Center to explore core blockchain technologies.
• China has filed the most blockchain applications in the world, with only 19% of them approved.
• The Chinese government has rolled out e-yuan (e-CNY) worth millions of dollars to promote CBDC adoption.

China Launches Blockchain Research Center

China has decided to move deeper into blockchain technology after its ban on cryptocurrency transactions in 2021. A recent report from China Daily noted that the country is about to launch a research center for blockchain innovation in Beijing. China’s National Blockchain Innovation Center will work with local universities, blockchain experts, and firms to explore core blockchain technologies.

Beijing Academy of Blockchian and Edge Computing

The Beijing Academy of blockchain and Edge Computing (BABEC) will take charge of the new research institution. BABEC is famous for its ChainMaker blockchain. BABEC’s ChainMaker has backing from 50 business corporations, including the State-owned China Construction Bank (China Unicom). Currently, ChainMaker executes 240 million transactions per second (TPS). In 2021, it processed 100,000 TPS. BABEC is a leader in blockchain technology, which explains why the state placed it in charge of the new research institution.

Chinese Government’s Hawkish Stance Against Cryptocurrency Trading

Despite China’s hawkish stance against cryptocurrency trading, the country has been active in blockchain innovation. China even prides itself as a “blockchain nation”. In September 2022, the Chinese government claimed that the country accounted for 84% of all filed blockchain applications worldwide. While this claim may not be far from the truth, the approval rate of filed blockchain applications is significantly low. Currently, only 19% of the total filed applications have received approval.

Updates On China’s CBDC Development

Blockchain technology and the CBDC project became the Chinese government’s trademark. As for China’s CBDC development, the central bank has rolled out e-yuan (e-CNY), worth millions of dollars, across the country to promote CBDC adoption. According to a report, the Chinese central bank launched aboue 600 million yuan ($89 million) worth of digital currency through several major cities such as Shenzhen and Suzhou during June 2020 trial runs for its digital currency/electronic payment system (DCEP).

Conclusion

China continues to move forward with its ambitious plans regarding adopting and developing innovative technologies such as blockchains and digital currencies despite its ban on cryptocurrency trading activities earlier this year . The recent launchings are further evidence that they are serious about their commitment towards building an advanced digital infrastructure fit for modern times