China Pushes Blockchain Amid Digital Economy Expansion Plans

Overview of China's Blockchain Plan

China has unveiled a plan to build a national blockchain network, which is part of a wider strategy to upgrade its digital infrastructure. The move is aimed at accelerating the expansion of the digital economy and improving the country's manufacturing and data storage capabilities.

China's Conservative Stance on Cryptocurrencies

Despite its efforts to develop blockchain technology, China remains conservative towards cryptocurrencies. The country has a blanket ban on all cryptocurrency transactions since 2021 and prohibits foreign companies from providing services to people living in mainland China.

China's Existing Blockchain Infrastructure

China currently has a Blockchain-based Service Network (BSN), a state-backed platform that supports enterprise and government applications but prohibits cryptocurrencies like Bitcoin from operating on its rails.

Implications of the New Blockchain Network

The new blockchain network is likely to build on BSN and provide a more comprehensive integration of the Chinese digital and real economies. The move could also pave the way for the development of new cryptocurrencies that are compliant with Chinese regulations.

China's Digital Economy Strategy

Beijing has recently been encouraging its citizens to increase their use of the digital yuan, a sovereign digital currency that is separate from cryptocurrencies. The country is also investing in the digitalization of its manufacturing industry and the construction of a 'national integrated computing power network'.