Blockchain Revolution In China? NPC Pushes For Rapid Development, Forgets About Crypto

Blockchain technology emerged in the spotlight at the “Two Sessions” event, a prominent annual gathering of China’s political and industry leaders in Beijing. At this event, National People’s Congress (NPC) member Dong Jin proposed expediting this technology’s development nationwide.

Blockchain’s Role In China’s Digital Ambition

The call to action emphasizes enhancing China’s blockchain infrastructure to “bolster” various sectors, including “government services, supply chains, and trade.”

This suggestion comes when the digital economy is increasing, and the potential for blockchain technology to “revolutionize” data sharing and circulation is becoming increasingly apparent.

Dong Jin’s proposal is about embracing the technology’s potential and establishing a framework that includes industry standards to assist the growth of the blockchain sector within China.

So far, the research center is actively working on technology applications tailored to critical industries such as maritime transport, supply chain finance, and energy.

Despite China’s stringent stance on crypto, including a ban on Bitcoin mining due to “concerns over energy consumption and environmental impact,” the nation’s interest in the technology as a foundational one remains “undiminished.”

However, this regulatory measure contrasts with the broader interest in integrating blockchain technology into the country’s developmental fabric.

Beijing, China, requires strengthening the monitoring and analysis of cryptocurrency mining activities in 2024 and resolutely cracking down on cryptocurrency-related mining activities in Beijing in accordance with laws and regulations. https://t.co/uY6eUTc3Vx

— Wu Blockchain (@WuBlockchain) February 4, 2024

The Global Context And Future Directions

It is worth noting that the initiative to advance blockchain development is part of a larger narrative in which China aims to position itself as a leader in the next wave of internet technology.

In May 2023, Beijing announced its ambition to become an innovation hub for the Web 3.0 industry, releasing a whitepaper, “Web3 Innovation and Development Whitepaper.” The paper outlined strategies for enhancing innovation and development within this new frontier.

This vision aligns with Dong Jin’s recent advocacy for blockchain, emphasizing the importance of using the technology’s capabilities for national advancement.

Meanwhile, as China continues to navigate its complex relationship with cryptocurrencies and blockchain technology, the international landscape continues to evolve. The United States, for instance, has seen a significant influx of Bitcoin mining operations relocating from China following the ban.

Concurrently, the US Energy Information Administration is launching initiatives to assess the environmental impact of commercial crypto mining, signaling a growing awareness of the sector’s energy footprint.

Featured image from Unsplash, Chart from TradingView