China has established a new institution with government support to accelerate the country’s industry using blockchain technology, despite its ongoing crackdown on cryptocurrencies. The National Blockchain Technology Innovation Center has been launched in Beijing, and it aims to create a research network with local universities, thinks tanks, and blockchain businesses to explore core blockchain technologies.
The Beijing Academy of Blockchain and Edge Computing is in charge of the institution, and it is known for developing the Chang’an Chain or ChainMaker blockchain, which is already backed by an ecosystem of 50 business corporations, most of them state-owned.
The goal is to use the fruits of this research to further the digitalization of China and expand its blockchain industry. The ChainMaker can execute 240 million transactions per second, up from 100,000 TPS in 2021.
In recent years, China has actively promoted itself as a leader in blockchain technology. According to the government, China is responsible for 84% of all blockchain applications filed globally, but only 19% of these applications have been approved.
The government is also focused on developing a central bank digital currency and has distributed millions of dollars worth of e-CNY to encourage its use. However, as of October 2022, the total transactions using e-CNY have only surpassed 100 billion yuan ($14 billion).
Despite China’s efforts to keep up with digital innovations, a former executive of the People’s Bank of China has suggested that the country should reconsider its strict crypto regulations, as a complete ban on crypto could mean missed opportunities for the formal financial system, including those related to blockchain and tokenization.