The Chinese government has launched a research center focused on exploring the potential of blockchain technology and achieving major technological advancements in the field.
As reported by South China Morning Post, the new National Blockchain Technology Innovation Centre will be responsible for studying and applying blockchain technology to various industrial applications.
The research center is based in Beijing, and will be managed by the Beijing Academy of Blockchain and Edge Computing (BABEC). It will focus on exploring the fundamental theory, software and hardware applications of blockchain technology, with the aim of developing related key technologies and industrial applications.
Despite its hardline stance against cryptocurrencies, the Chinese government has been a major advocate for blockchain technology. In September 2020, the government reported that China had filed for 84% of all blockchain applications worldwide, although only 19% of those applications were approved.
In 2021, Chinese President Xi Jinping declared blockchain to be “an important breakthrough for independent innovation of core technologies,” and highlighted its potential for transforming various sectors of the economy, such as digital finance, IoT, smart manufacturing, supply chain management, and digital asset trading.
The Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC) also issued guidelines in 2021 stating that by 2030 blockchain technology should be widely implemented in various industries across the country.
In September 2021, Chinese regulatory authorities caused a stir in the crypto world when they implemented a blanket ban on cryptocurrencies and businesses providing related services, just months after announcing their intention to prohibit cryptocurrency mining.
Blockchain Adoption Growing
The use of blockchain technology has been gaining traction among countries and organizations in recent years. It provides an efficient and cost-effective way of making and receiving payments, storing data, and establishing credit histories.
As reported earlier, the California Department of Motor Vehicles recently announced plans to use blockchain technology for record-keeping purposes, including issuing car ownership titles and streamlining the transfer of such titles.
In a previous report, the World Economic Forum (WEF) also noted that blockchain technology will continue to be an “integral” part of the modern economy. The organization highlighted the numerous applications of cryptography and blockchain technologies, and mentioned that they are already widely used in the financial services industry.
“Indeed, as a test of the staying power of digital assets and blockchains at the core of financial services (and other areas of the global economy), watch what the big banks and mature financial services firms do, not what they say.”
