China has decided to move deeper into blockchain technology after banning cryptocurrency transactions in 2021. A final report from China Daily notes that the country will start a research center for blockchain innovation in Beijing.
The China National Blockchain Innovation Center will cooperate with local universities, blockchain experts, and companies to explore core blockchain technology.
China Ready to Improve Digital Infrastructure
According to the report, the research will produce results that will play an important role in supporting China’s new digital infrastructure. The report notes that the innovation center will focus on the underlying blockchain theory, key technology software, and hardware, including the underlying platform and verification network.
Beijing Academy of blockchain and Edge Computing (BABEC) will be in charge of the new research institute. BABY famous for its ChainMaker blockchain. BABEC’s ChainMaker has the support of 50 business enterprises, including the state-owned China Construction Bank (China Unicom).
Currently, ChainMaker is doing 240 million transactions per second (TPS). In 2021, 100,000 TPS will be processed. BABEC is a leader in blockchain technology, which explains why the country is responsible for the new research institute.
Despite China’s hawkish attitude towards cryptocurrency trading, the country has been active in blockchain innovation. China even prides itself as a blockchain country. In September 2022, the The Chinese government claims it the country accounts for 84% of all blockchain applications filed worldwide.
While this statement may not be far from the truth, the approval rate of blockchain applications submitted is very low. Currently, only 19% of the total applications submitted have received approval.
Update on China’s CBDC Development
Blockchain technology and CBDC projects are trademarks of the Chinese government. For the development of China’s CBDC, the central bank has launched e-yuan (e-CNY), worth millions of dollars, across the country to promote the adoption of CBDC. According to a reportthe Chinese central bank launched around 200 activities for e-CNY across the country during the holiday.
These activities are aimed at promoting consumption. During this exercise, many cities in the Chain launched a CBDC of 180 million yuan ($26.5) in subsidy and consumption coupon programs. Global Times, a Chinese English-language news outlet, quoted cities like Shenzhen local government gave more than $14.7 million worth of e-CNY to subsidize the catering industry.
China has made several efforts, including setting targets for various cities to increase the use of CBDCs. apart report noted that the city of Hangzhou issued 80 yuan e-CNY vouchers to each resident on January 16. The city gave a total of 4 million yuan ($590,000) worth of e-CNY.
Also, on February 1, a senior ruling party official in Suzhou City set speculative key performance indicators for the end of 2023. The official envisioned 2 trillion yuan ($300 billion) worth of e-CNY transactions in the city by the end of 2023. .
The target is high for a single city, as total e-CNY transactions are almost zero exceeded 100 billion yuan ($14 billion) in October 2022, two years after the launch of the CBDC.
The e-CNY wallet app features the ability to send red packets called hongbao to offer prizes to attract new users. Earlier in January, the app was also accepted update to allow users to make wireless payments using their Android phones.
China has been a world-renowned technology center for years. With the new blockchain innovation research center, China can advance deeper and even become more successful.
Featured Image from Pixabay l zhangliams and chart from Tradingview.com