China Establishes National Blockchain Organization (Report)

The Chinese Ministry of Science and Technology reportedly approved the launch of the National Blockchain Technology Innovation Center. 

It will be based in the capital Beijing and will focus on use cases that could boost the local economy. 

Unlike BTC, China is Supportive of Blockchain 

According to recent coverage, the newly-formed entity will try to advance the financial network of the most populous country by implementing the use cases of blockchain technology. The center, led by Microchip Research Institute, will also collaborate with domestic universities and research institutes to dive deeper into the industry. 

Gathering talents in the blockchain sector, building a national scientific force, and increasing the technological capabilities of locals are also on the agenda. 

Contrary to cryptocurrencies, the People’s Republic of China is open to exploring the merits of blockchain. President Xi Jinping is also a proponent, saying in 2019 that the nation needs to “seize the opportunities” presented by the technology. He also described it as an “important breakthrough in independent innovation of core technologies.”

This has not been the case for bitcoin and the alternative coins, though. The authorities banned all cryptocurrency operations on local soil in 2021, claiming the measure could decrease financial crime and protect local investors from the alleged fraudulent nature of the assets.

CBDC Also Put on a Pedestal

Apart from blockchain technology, the Chinese government has been actively exploring ways to develop and popularize its central bank digital currency (CBDC).

It distributed more than $26 million worth of e-CNY to the residents of Shenzhen, Jinan, Lianyungang, and Hangzhou so they could use the product as a means of payment during the Spring Festival. The citizens of Chengdu and Beijing received over $10 million in digital yuan in 2021.

The lawmakers allowed the usage of the CBDC during the Winter Olympic Games held in the capital at the beginning of 2022: a decision that caused serious controversy. 

The US Senators Marsha Blackburn, Roger Wicker, and Cynthia Lummis urged American athletes to stay away from the e-CNY over espionage concerns. The Chinese Foreign Ministry struck back, requesting the Washington politicians refrain from commenting on products they don’t understand. 

As CryptoPotato reported, sportspeople and visitors transacted over $300,000 worth of digital yuan daily during the Olympic Games.