While China has continued its crackdown on cryptocurrencies, it remains one of the biggest advocates of blockchain technology. In a surprising move, the nation is launching the National Blockchain Technology Innovation Center in Beijing.
As per local media reports, the center will create a research network with local universities, think tanks, and blockchain businesses to explore core blockchain technologies. The outcomes of this research will be used to further the digitalization of China and expand its blockchain industry.
Sources reveal that the responsibility of the new institution has been placed with the Beijing Academy of Blockchain and Edge Computing — an entity most famous for developing Chang’an Chain or ChainMaker blockchain. Chang’An Chain, officially known as ChainMaker, is China’s first domestically researched and developed open-source blockchain platform.
This blockchain platform is already backed by an ecosystem of 50 business corporations, most of them — such as the China Construction Bank or China Unicom, which is owned by the state. At the time of writing, the available number of transactions per second (TPS) that the ChainMaker can execute is 240 million — up from 100,000 TPS in 2021.
China has been proactively promoting itself as a blockchain nation in recent years. In September 2022, its government claimed that China accounts for 84% of all blockchain applications filed worldwide. While the real numbers might not differ much, the approval rate is low, with only 19% of the total filed applications getting approved.
As per a survey by KPMG, blockchain has emerged as the fifth most preferred technology among leading Chinese fintech firms, with a share of 33% as of 2022. In another survey from CasperLabs, a blockchain-based firm, and Zogby Analytics, a market research agency, the sentiments around blockchain adoption are positive, especially among enterprises. The poll was conducted by over 600 business enterprise “decision makers” in the US, the UK, and China.
The extended figures revealed that nearly 90% of the businesses surveyed reported deploying blockchain technology in some capacity, whereas 87% opined that they plan to invest in the coming year. These results were particularly pronounced in China, where over half of the respondents plan to invest in blockchain this year.
Along with blockchain research, developing a central bank digital currency is also a priority for the Chinese government. Millions of dollars worth of e-CNY have been handed out nationwide to boost its adoption. However, cumulative e-CNY transactions only crossed 100 billion yuan ($14 billion) as of October 2022.