- Another notable aspect is the contrast between China’s strict stance against cryptocurrencies and its embrace of blockchain technology.
- Despite crackdowns on crypto trading, the government is actively promoting blockchain initiatives like the “Belt and Road” platform.
China has unveiled a groundbreaking initiative led by Conflux Network, known as the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.” This initiative, announced on April 1, represents a significant stride towards harnessing blockchain technology for facilitating seamless cross-border transactions.
The project’s inauguration was marked by a launch and implementation plan demonstration meeting hosted by the Shanghai Tree Graph Blockchain Research Institute on March 30. Led by the Shanghai Shutu Blockchain Research Institute, the initiative witnessed active participation from esteemed institutions such as the China Academy of Information and Communications Technology and several prominent universities.
The primary objective of this initiative is to cater to the unique characteristics and demands of the “Belt and Road” transnational cooperation scenario. It aims to develop an advanced blockchain primary platform capable of supporting multi-country deployment and collaborative supervision across various subjects. Furthermore, the platform will serve as a cornerstone for demonstrating cross-border cooperation applications in economic, trade, and cultural domains.
Conflux Network, operating under the Conflux Foundation (Shanghai Tree-Graph Blockchain Research Institute), recently played a crucial role in beta-testing the Hong Kong Dollar (HKD)-backed stablecoin, AxHKD. This stablecoin, developed by local fintech company AnchorX, is slated for initial launch on Conflux Network, followed by Ethereum. Notably, Conflux Network is recognized as the sole regulatory-compliant public blockchain in China.
The initiative underscores China’s keen interest in blockchain technology, despite its strict stance against cryptocurrencies. While the government has implemented stringent regulations on cryptocurrencies, including crackdowns in 2017 and 2021, the unveiling of this blockchain initiative highlights the nation’s commitment to exploring the potential of blockchain while maintaining a cautious approach towards cryptocurrencies.
Nevertheless, despite regulatory measures, Chinese investors continue to show interest in cryptocurrencies as a hedge against economic uncertainties and sluggish stock markets. This has led to a burgeoning underground crypto industry, with mainland investors seeking alternative avenues to participate in crypto trading.
Despite the ban on cryptocurrency trading, Chinese tech giants like Tencent and Huawei are actively venturing into the Web3 space, leveraging their computing resources to support web3 startups. This trend underscores China’s evolving engagement with blockchain technology and its broader implications for the global digital landscape.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
