China has announced the launch of a new “public blockchain infrastructure” platform to support the Belt and Road Initiative. Led by Conflux Network, this platform will provide a foundational public blockchain to facilitate the implementation of cross-border cooperation projects.
Known as the “China Ethereum,” Conflux Network is the only officially recognized public and permissionless blockchain project in China, offering blockchain technology services to domestic and international enterprises.
On April 1st, Conflux Network shared this news on the social platform X, highlighting China’s important step towards promoting seamless and secure cross-border transactions through blockchain technology.
According to reports from foreign media, the Shanghai ShuTu Blockchain Research Institute held a project launch and implementation plan demonstration meeting for a large-scale blockchain infrastructure platform for the Belt and Road Initiative on March 30th. Leading the project, the Shanghai ShuTu Blockchain Research Institute collaborated with renowned institutions such as the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, Fudan University, and Shanghai Maritime University.
According to official sources, the main goal of this project is to address the unique characteristics and requirements of cross-border cooperation scenarios in the Belt and Road Initiative. Therefore, the project will focus on developing an advanced blockchain infrastructure platform that supports multi-country deployment and multi-party collaborative supervision. Based on this platform, demonstration applications for cross-border cooperation will be implemented in the economic, trade, and cultural fields.
Conflux Network, known as the “China Ethereum,” is the only officially recognized public and permissionless blockchain project in China, providing blockchain technology services to domestic and international enterprises.
President Xi Jinping’s positive outlook on blockchain technology raises questions about China’s stance on cryptocurrencies.
Although the Chinese government has taken a tough stance on cryptocurrencies since 2017 and officially banned all cryptocurrency trading and mining activities in 2021, Chinese President Xi Jinping remains optimistic about blockchain technology, considering it one of the key emerging technologies for digital economic development.
️ Further reading:
From the world’s largest mining country to a comprehensive ban! What will happen if the cryptocurrency ban is lifted? Understanding the history of China’s blockchain development in one chart
Chinese traders have still found ways to circumvent the trading ban and remain active in the cryptocurrency world. According to a report released by Vietnamese venture capital firm Kyros Ventures in December 2023, 33.3% of Chinese investors hold a significant amount of stablecoins, ranking second globally, only behind Vietnam’s 58.6%.
️ Further reading:
China’s cryptocurrency ban can’t stop it! People buy coins “physically” at snack stalls and laundromats, with a total trading volume of $86.4 billion in a year
As the cryptocurrency industry continues to gain popularity, the Chinese government has also recognized the risks associated with money laundering. In the past, so-called “virtual currency trading platforms” facilitated an underground remittance business worth up to $2.2 billion to bypass China’s foreign exchange restrictions. As a result, China has made significant revisions to anti-money laundering (AML) regulations to impose stricter controls on cryptocurrency-related transactions.
These actions by the Chinese government demonstrate their interest in the cryptocurrency industry and their confidence in blockchain technology. As the Chinese cryptocurrency market continues to develop, people will continue to monitor the government’s policies towards the cryptocurrency industry.
References:
cointelegraph, cryptonews
Proofread by: Gao Jingyuan