China has announced its National Blockchain Data Infrastructure, a state-backed framework designed to leverage blockchain technology to manage and process data across various sectors.
The initiative is part of the country’s broader strategy to integrate blockchain technology into its digital economy.
Importantly, the country plans to fully implement the infrastructure by 2029.
JUST IN:
China plans to integrate blockchain technology into its national data infrastructure, aiming for full implementation by 2029. pic.twitter.com/CT7sqYHsiM
β Woody Lightyear π (@WoodyLightyearx) January 9, 2025
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Implications for Blockchain Technology
China’s national blockchain data infrastructure represents an important step toward widespread adoption of DLT.
Unlike public blockchains such as Bitcoin or Ethereum, China’s infrastructure operates on a permissioned blockchain model. This means that even though it uses decentralized ledger technology (DLT), it is centrally controlled by government authorities.
By developing its own blockchain standards, China encourage companies to adopt blockchain solutions adapted to this infrastructure.
As China embraces blockchain technology, its stance on cryptocurrencies remains restrictive.
The country banned cryptocurrency trading and mining activities in 2021, citing concerns over financial stability and energy consumption.
This dichotomy between blockchain adoption and crypto regulation highlights China’s selective approach to leveraging DLT.
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China Continues to Crack Down on Crypto While Open to Blockchain Technology
The country banned cryptocurrency trading and mining activities in 2021, citing concerns over financial stability and energy consumption.
Once again intensifying its grip on crypto activities, China recently introduced new foreign exchange rules that impose tighter control over crypto transactions.
According to a report from the South China Morning Post on December 31, 2024, banks are supposed to monitor and report βrisky behavior in foreign exchange trading.β This includes underground banking, cross-border gambling and illegal cross-border financial activities involving cryptocurrencies.
The announcement was made by the National Foreign Exchange Administration. Banks were mandated to track transactions based on the identity of the people and institutions involved, the source of funds and the frequency of transactions. Additionally, they must implement risk control measures to restrict services to entities reported to be engaging in such activities.
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The article China Bets Big on Blockchain: New National Data Infrastructure Aims to Power Digital Economy appeared first on 99Bitcoins.
