China to launch national blockchain research center

The new institution is led by the Beijing Academy of Blockchain and Edge Computing

10.02.2023 - 14:45

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What’s new? The National Blockchain Technology Innovation Center will be launched in China’s capital, Beijing. According to China Daily, it will create a research network involving local universities, think tanks, and blockchain companies to study distributed ledger technology. The results will be used to further digitalize China and develop the blockchain industry.

China Daily’s material

What else is known about the initiative? The new institution is led by the Beijing Academy of Blockchain and Edge Computing, best known for developing the Chang'an Chain or ChainMaker blockchain. This network is supported by an ecosystem of 50 business corporations, most of which are owned by the state. The number of transactions per second (TPS) that ChainMaker can perform is 240 million.

PRC and cryptocurrencies. China is one of the most hostile countries to cryptocurrencies. Back in 2017, the People’s Bank of China banned the operation of cryptocurrency exchanges, and a ban on mining was introduced in May 2021. In late September, the Central Bank also banned all cryptocurrency transactions.

However, the situation began to change in 2022. For example, in September, the government announced that China accounts for 84% of all blockchain-related patent applications worldwide. While the actual numbers may not vary much, the approval rate is low, with only 19% of all applications filed receiving approval.

In January 2023, signs of China’s return to the crypto market were highlighted by analysts at CryptoQuant. In addition, Hong Kong’s regulator intends to pass a law separate from mainland China to legalize crypto investing for retail investors. According to former BitMEX CEO Arthur Hayes, the legalization of digital assets in the region will be a trigger for the growth of the crypto market.

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