Despite the ongoing crackdown on crypto, China continues to embrace blockchain technology – to the point of launching a National Blockchain Technology Innovation Center in the capital Beijing.
According to a China Daily report from February 8, the center will establish a research network with local universities, think tanks and blockchain businesses to explore core blockchain technology. The fruits of this research will be used to further digitize China and develop the blockchain industry.
The one responsible for this new institution is the Academy of Blockchain and Edge Computing Beijing – the entity most famous for developing the Chang’an Chain or ChainMaker blockchain. This blockchain has been supported by an ecosystem of 50 business companies, most of which – such as China Construction Bank or China Unicom – are owned by the state. As of publication time, the known number of transactions per second (TPS) that ChainMaker can handle is 240 million – up from 100,000 TPS in 2021.
related: Chinese Communist Party officials issued KPIs for e-CNY transactions in Suzhou
China has been actively marketing itself as a blockchain country in recent years. In September 2022, the government stated that China has 84% of all blockchain applications filed worldwide. While the actual numbers may not be different, the approval rate is low, only 19% of the total applications submitted are approved.
Along with blockchain research, developing a central bank digital currency is also a priority for the Chinese government. Millions of e-CNY dollars have been handed out nationwide to increase adoption. However, cumulative e-CNY transactions will only exceed 100 billion yuan ($14 billion) in October 2022.
With all its efforts to achieve digital innovation, a former executive of the People’s Bank of China recently called for the country to review strict crypto restrictions. The former official stated that a permanent ban on crypto could lead to many missed opportunities for the formal financial system, including those related to blockchain and tokenization.