China to launch a national blockchain Center: Development of Blockchain Tech in China

2023-03-13, 14:29

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## TL; DR
China is working towards enhancing its national blockchain technology to support its expanding economy.

Although China has banned cryptocurrencies it aims to develop Chinese blockchain technology.

The Ministry of Science and Technology has approved the introduction of the National Blockchain Technology Innovation Center.

The Chinese President, Xi Jinping, believes that the country should expand the China blockchain network if it is to remain competitive in the changing global economic environment.

## Introduction

Blockchain technology continues to change the way countries control their resources and improve the welfare of their citizens. The edge of countries to gain competitive advantages against their rivals is another reason that they continue to carry research and development on how to harness the blockchain technology.

China is one of the countries that have announced a new strategic focus on how to use blockchain technology. Recently, it divulged its aim to launch the National Blockchain Technology innovation Center in the  capital city, Beijing.

Read also: [The Main Countries that Actually Banned Crypto](https://www.gate.io/blog_detail/716/the-main-countries-that-actually-banned-crypto "The Main Countries that Actually Banned Crypto")

## Plan to establish the National Blockchain Technology Innovation Center

China is planning to establish the National Blockchain technology Innovation Center, despite its current ban on cryptocurrencies. This was recently announced by China’s Ministry of Science and Technology.

![](https://gimg2.gateimg.com/image/article/1678717607CBDC1.png)
China to establish a National Blockchain technology Innovation Center- Alexablockchain

The aim of the center is to carry out research on blockchain technology to boost industrial development and the national economy. The other thrust is to find out how to apply the blockchain to  various economic sectors.

Read also: [Understanding China's Digital Yuan](https://www.gate.io/blog_detail/1415/understanding-chinas-digital-yuan "Understanding China's Digital Yuan")

The center will collaborate with universities, businesses and research institutes to experiment with the blockchain and come up with innovative ways of using the technology to solve the challenges the country is facing as well as creating competitive advantage in the ever changing global environment.

In addition, the National Blockchain technology Innovation Center will focus on the fundamental theory of the blockchain and the related software and hardware systems. The discoveries and innovations spearheaded by the center will expand the China blockchain network as well as  enhance the digitization of the Chinese economy and society in general.

It is also important to note that the Chinese People’s Republic President, Xi Jinping, supports the development of blockchain technology as he believes that it has the power to transform the industrial base of the country. The center should explore various use cases of blockchain technology.

Soon after President Xi Jinping’s endorsement of blockchain technology, many startups, tech firms and other investors joined the blockchain space in the country. In July 2022, the country reported that 1,821 companies had registered with the Cyberspace Administration of China (CAC).

## Beijing Academy of Blockchain and Edge Computing’s (BABEC) role 
As part of the National Blockchain technology Innovation Center, the Beijing Academy of Blockchain and Edge Computing (BABEC), backed by the Beijing municipal government, will play a big role in the development of blockchain technology in the country.

The reason why the Beijing Academy of Blockchain and Edge Computing (BABEC) was tasked to lead the center is due to its expertise in the blockchain sector. BABEC is well-known for developing Chang’an Chain or ChainMaker blockchain which is supported by many Chinese businesses and strategic state owned enterprises such as the China Construction Bank.

![](https://gimg2.gateimg.com/image/article/1678717632CBDC2.png)
China Construction Bank - Ledgerinsight

Already, the ChainMaker blockchain supports many key areas of the Chinese economy such as the government’s tax services, supply chain finance, digital identity systems and other government services.

As an example, the government of Beijing established version 2.0 of its data directory on the ChainMaker blockchain. This application collects and synthesizes data from 16 economic development zones and more than 80 government departments located in Beijing.

BABEC has also developed and launched the HIVE computer cluster on the ChainMaker blockchain. This network is very fast as it handles over 240 million transactions per second which enhances its capacity to process large volumes of data.

Read also: [WeChat Bans Accounts Involved in Crypto and NFT as China tightens up on Crypto](https://www.gate.io/blog_detail/1230/wechat-bans-accounts-involved-in-crypto-and-nft-as-china-tightens-up-on-crypto "WeChat Bans Accounts Involved in Crypto and NFT as China tightens up on Crypto")

## The current state of China in blockchain 
The pronouncement of the government to enhance Chinese blockchain technology does not mean that the country has been idle over the years. Despite the ban of cryptocurrency in the country, Chinese blockchain technology has been developing at a fast pace.

For example, China is one country that has done much in developing its central bank digital currency. Specifically, the country has already produced and distributed its e-Yuan worth millions of United States dollars.

Also, China is leading the pack in offering crypto mining services since it has cheap energy sources and favourable climatic conditions. Currently, China controls over 70% of the total <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> hashrate.

It is also a major producer and supplier of cryptocurrency mining equipment. For example, one of its large companies,Bitmain, is among the  global leaders in producing crypto mining equipment. 
There are also many blockchain firms such as Binance which have their roots in China. The reason why such companies are operating outside the country is due to the ban it imposed on cryptocurrencies.

## Conclusion 
In short, China is willing to promote its blockchain technology to spur its industrial transformation. The fact that the country has banned cryptocurrencies does not imply that it does not value the blockchain technology. In fact, the Chinese President, Xi Jinping, believes that the blockchain has a critical role to play in the economy.

## FAQs on China Blockchain
**Is blockchain available in China?**

China uses the blockchain technology in various sectors of its economy such as government’s tax services, supply chain finance, digital identity systems and other government services. As a result, it has established the National Blockchain Technology Innovation Center to carry out research and development on how the country can increase the use cases of blockchain.

**Which country is leading in blockchain? **
Recent data has shown that Japan is the country that is leading in using blockchain technology. The main reason is that it is the first country to mine and use <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> on a large scale. The other leading countries in blockchain usage are Switzerland, China, United Kingdom, USA and Singapore.

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<div>Author:** Mashell C.**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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