• China is launching a National Blockchain Innovation Center to explore core blockchain technologies.
• Beijing Academy of Blockchain and Edge Computing (BABEC) will be taking charge of the research institution.
• The Chinese government has rolled out e-yuan (e-CNY), worth millions of dollars, across the country to promote CBDC adoption.
China Promotes Blockchain Technology
China has decided to move deeper into blockchain technology after its ban on cryptocurrency transactions in 2021. A recent report from China Daily noted that the country is about to launch a research center for blockchain innovation in Beijing.
National Blockchain Innovation Center
China’s National Blockchain Innovation Center will work with local universities, blockchain experts, and firms to explore core blockchain technologies. The report noted that the innovation center would focus on basic blockchain theory, key technologies’ software, and hardware, including basic platform and verification networks.
Beijing Academy of Blockchain and Edge Computing (BABEC)
Beijing Academy of blockchain and Edge Computing (BABEC) will take charge of the new research institution. BABEC is famous for its ChainMaker blockchain which has backing from 50 business corporations, including the State-owned China Construction Bank (China Unicom). Currently, ChainMaker executes 240 million transactions per second (TPS). In 2021, it processed 100,000 TPS. BABEC is a leader in blockchain technology which explains why the state placed it in charge of the new research institution.
Adoption Of CBDC
Despite China’s hawkish stance against cryptocurrency trading, the country has been active in blockchain innovation. In September 2022, the Chinese government claimed that the country accounted for 84% of all filed blockchain applications worldwide with only 19% receiving approval rates. As for China’s CBDC development, the central bank has rolled out e-yuan (e-CNY), worth millions of dollars across the country to promote CBDC adoption.
The Chinese government is actively promoting using distributed ledger technology through their National Blockchain Innovation Center and CBDC project by rolling out e-yuan across countries despite their initial ban on cryptocurrency trading in 2021. These initiatives are expected to increase adoption rates significantly in addition to providing training opportunities for local universities and businesses related to this sector.