China Is Building a National Blockchain Network: Will Bitcoin Benefit?

China Builds National Blockchain Network: Impact on Bitcoin Uncertain

National Blockchain Network: What's in the Plan?

Beijing's top leadership has called for a national blockchain network as one of 19 measures in a new economic blueprint. The plan, announced on October 9, aims to merge traditional industry with digital technology by creating a nationwide computing grid and backing the concept of "East Data, West Computing," which sends data from eastern cities to western data centers.

What About Bitcoin?

The plan does not mention Bitcoin or other cryptocurrencies, despite China's ongoing efforts to develop its digital yuan. The People's Bank of China (PBOC) and seven other agencies have restated the ban on crypto trading in mainland China in February, with Beijing's digital money push running through its own currency.

Impact on Bitcoin Trading

The move raises questions about the potential impact on Bitcoin trading, which remains illegal in mainland China. Joseph Chee, chief executive of Nasdaq-listed Solana Company, has stated that he believes Bitcoin will go through another super cycle, but did not provide a timeline for Beijing's potential change in stance.

What's Next?

The plan hands follow-up work to the Central Financial and Economic Affairs Commission and the National Development and Reform Commission. Their rules will show what the network carries and whether crypto stays shut out. The outcome of this plan will be closely watched by the cryptocurrency community, with many hoping for a change in Beijing's stance on Bitcoin.