Chinese Government Demonstrates Blockchain Support despite Crypto Ban Measures

2023-05-23, 08:32

[//]:content-type-MARKDOWN-DONOT-DELETE
![](https://gimg2.gateimg.com/blog/1679447253722320711jiami.jpeg)
The National Blockchain Research Center in Beijing aims to coordinate blockchain activities that support non-crypto use cases.

China, through the National Blockchain Research Center, aims to train more than 500,000 blockchain professionals who will be active in promoting blockchain technology in the country.

The focus of the Chinese government is to create an infrastructure that supports the application of the blockchain technology  in various sectors such as healthcare.

**Keywords**: China crypto, Chinese digital assets, crypto ban, crypto in China, crypto, cryptocurrency in China, blockchain adoption
## Introduction
The Chinese government is working on developing a robust blockchain infrastructure and system that are useful outside the crypto sector.  Whereas many governments and institutions are focusing on digital assets like cryptocurrencies and non-fungible tokens, China  wants to harness blockchain technology to strengthen its industrial and technological base. Therefore, this article covers how the Chinese government is developing blockchain technology for non-cryptocurrency uses. 
## China inaugurates the National Blockchain Research Center in Beijing
The Chinese government has shown its willingness to harness and develop the blockchain technology for non-cryptocurrency use [through creating the National Research Center](https://www.gate.io/blog_detail/2298/china-to-launch-a-national-blockchain-center-development-of-blockchain-tech-in-china "through creating the National Research Center") which it has already inaugurated in Beijing.

Supported by the Chinese Ministry of Science and Technology, the National Blockchain Research Center will work closely with universities, research institutes and tech companies to find new use cases of the blockchain and [expand its adoption in both](https://www.gate.io/pt/blog_detail/2563/countries-that-lead-in-blockchain-adoption "expand its adoption in both") the public and the private sectors.

Beijing Academy of Blockchain and Edge Computing, which is a government-backed research institute, known for developing the ChainMaker, leads the National Blockchain Research Center in its innovative and blockchain development initiatives. Although it has several objectives, its key aim is to develop and maintain a national-level blockchain network that supports China’s expanding industrial base. 
![](https://gimg2.gateimg.com/image/article/16848305591.png)
China approves the National Blockchain Research Center - SCMP

To make the blockchain a central part of its digital transformation China will train at least 500,000 blockchain professionals who will spearhead its digital sector development. This is because human competency is a key driver of innovation, industrial development and technological advancement. As we note, despite [the ban on cryptocurrencies China](https://www.gate.io/blog_detail/378 "the ban on cryptocurrencies China") aims to maintain its position as a country that leads in blockchain innovations.

Already, China has made notable progress in adopting and using blockchain technology, way ahead of other countries. Apart from developing its central bank digital currency, the e-yuan, the Chinese government has put data from over 80 public departments on Chang’an Chain to “effectively improve the security and order of government affairs and social data”.

Despite its high adoption of the blockchain technology the Chinese government maintains its ban on cryptocurrency activities in the country. For example, China does not allow trading of cryptocurrencies in the country. In addition, it is not legal for individuals and firms to participate in the crypto mining industry, limiting the adoption of cryptocurrencies in the country.

However, the government allows purchasing and owning of non-fungible tokens (NFTs) under the “digital collectibles” moniker. Significantly, its citizens can only purchase the NFTs using yuan but are not allowed to trade them for profit.

The blockchain technology took a center stage in the country in 2019 when President Xi Jinping endorsed its adoption for industrial use. As such, the government wants the country to remain competitive in this cutting edge technology. At the same time, it seems that China is allowing Hong Kong to adopt cryptocurrencies and other digital assets as a test case for the country.

Also, the National Blockchain Research Center [wants to establish a nationwide blockchain network](https://www.gate.io/uk/blog_detail/2298/china-to-launch-a-national-blockchain-center-development-of-blockchain-tech-in-china "wants to establish a nationwide blockchain network") which connects existing blockchains and enables cross-chain developments. This vision was promulgated by the Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC), the two main tech industry regulators in the country, in 2021.

As a sign that China wants to promote non-cryptocurrency applications of the blockchain it recently launched its regulated NFT marketplace. There are other various initiatives to use the blockchain technology. For instance, some entities want to use the Chang’An Chain, an open-source platform created by the Beijing Academy of Blockchain and Edge Computing, to record carbon life cycle on the public ledger.

In addition, the Chinese healthcare players are working on their blockchain, the Xiaotong Medical Chain, to record trusted data. With this, various medical institutions will share their information in a transparent, secure and verifiable way.

Read also: [Chinese City of Changshu will be Paying Salaries in E-Yuan](https://www.gate.io/blog_detail/2600/china-pays-salaries-in-digital-yuan "Chinese City of Changshu will be Paying Salaries in E-Yuan")
## Chinese digital companies seek sanctuary in Hong Kong
There is much interest in Chinese digital assets and cryptocurrencies in the country. Due to the crypto ban in China many Chinese digital asset companies are seeking sanctuary in Hong Kong where there are friendly crypto regulations.

Likewise, some of the well-established crypto businesses have offices in Hong Kong and offer various services. For example, <a href="/price/huobi-ht" target="_blank" class="blog_inner_link">Huobi</a> is operating in Hong Kong. Interestingly, some Chinese banks are also planning to offer various crypto services in the city.

examples of  banks that are willing to offer crypto services in the city are the Hong Kong arms of Bank of Communications, Bank of China and Shanghai Pudong Development Bank. Also, CNHC Group, the blockchain technology company, is willing to provide crypto banking services in the city.  
![](https://gimg2.gateimg.com/image/article/16848306522.png)
Bank of China to provide crypto services in Hong Kong - Seenews

Following the collapse of the key United States banks that used to provide crypto services, banks in Hong Kong are willing to fill that gap. 
## Cryptocurrency Activities in Hong Kong
Let’s briefly discuss why some firms prefer to relocate to Hong Kong. The city has made strides in promoting digital assets like cryptocurrencies. For example, earlier this year it set aside HK$50 million (US$6.4 million) to fund the development of the web3 industry.

Generally, the regulators in Hong Kong are working hard to attract global crypto firms to boost its blockchain and digital sectors. The reasons why these companies come to the city is its clear policy framework on cryptocurrencies. Similarly, the city’s concerted effort to promote blockchain technology gives crypto businesses hope that they will thrive well in Hong Kong. 
## Conclusion
Despite the ban of China crypto, the Chinese government supports the expansion of the blockchain technology for non-crypto use cases such as data sharing in the medical sector. The recently inaugurated National Blockchain Research Center aims to coordinate the application of the blockchain technology in different sectors of the economy. Due to the ban of cryptocurrency activities in Mainland China, many crypto firms are planning to relocate to Hong Kong.

<div class="blog-details-info">
<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.
</div>

分享一下