China Embraces Blockchain with National Platform for Belt and Road

In collaboration with Conflux Network, the Chinese government has introduced a new public blockchain infrastructure platform for the Belt and Road Initiative, aiming to facilitate cross-border applications and support international cooperation projects. Despite China's previous stance on cryptocurrency, this move highlights the country's shift towards embracing blockchain technology for practical and global applications.

China Embraces Blockchain Technology with Public Infrastructure Platform for Belt and Road Initiative

In a groundbreaking move, the Chinese government, in collaboration with Conflux Network, has introduced a comprehensive blockchain infrastructure platform known as the "Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative." This platform, underpinned by the advanced technology of Conflux Network, is set to become the backbone for developing transformative cross-border applications, aligning seamlessly with the ambitious goals of the Belt and Road Initiative.

Conflux Network: Spearheading Cross-Border Cooperation

Conflux Network, operated by the Shanghai Tree-Graph Blockchain Research Institute (also known as Conflux Foundation), is the driving force behind this groundbreaking initiative. The project's primary objective is to establish a robust public blockchain infrastructure platform that can seamlessly support cross-border cooperation projects along the Belt and Road Initiative. This platform will provide a stable and secure foundation for developing applications that facilitate seamless collaboration across national borders.

China's Blockchain Embrace Amid Crypto Restrictions

Despite China's strict stance on cryptocurrency trading and mining, this strategic move signals a significant shift towards embracing blockchain technology for practical and international applications. While China has implemented stringent regulations, including the closure of Bitcoin exchanges and a ban on crypto trading and mining, its recognition of blockchain's potential for innovation and cross-border cooperation is a testament to the technology's transformative capabilities.

Crypto in China: Regulations and Adaptations

China's engagement with the cryptocurrency market has been marked by a series of regulatory measures. In 2017, the government cracked down on the crypto industry, ordering the closure of Bitcoin exchanges. This was followed by a comprehensive ban on crypto trading and mining in 2021, accompanied by a prohibition on offshore exchanges offering services within the country. Prior to these measures, China dominated Bitcoin mining, accounting for two-thirds of the global hashing power.

Despite these restrictions, a recent report by Vietnamese venture capital firm Kyros Ventures revealed that a significant proportion of Chinese investors (33.3%) hold stablecoins, ranking second only to Vietnam in terms of adoption. This indicates that Chinese investors remain actively engaged in the cryptocurrency market, primarily through centralized crypto exchanges that operate outside the country's regulatory purview.

In addition, China is actively updating its Anti-Money Laundering (AML) regulations to incorporate cryptocurrency-related transactions. This amendment, the first significant overhaul since 2007, aims to strengthen measures against crypto-related money laundering, addressing concerns raised about virtual currency trading platforms facilitating illicit financial activities.

Conclusion

China's introduction of a public blockchain infrastructure platform in collaboration with Conflux Network marks a pivotal moment in the country's engagement with blockchain technology. This strategic move signals a shift towards embracing blockchain's potential for cross-border cooperation, innovation, and economic development. While regulatory measures remain in place, China's recognition of blockchain's transformational capabilities demonstrates its commitment to harnessing technology for the betterment of its economy and its partnerships within the Belt and Road Initiative.