China Eyes Blockchain 'Super-Platform' for 'Belt and Road' Initiative

Despite its opposition to cryptocurrency trading, China remains invested in exploring the potential of blockchain. Representatives from Conflux Network, the China Academy of Information and Communications Technology, and other institutions recently participated in a demonstration meeting for a blockchain platform tailored to the Belt and Road Initiative. The event aimed to develop a platform that would support cross-border cooperation and multi-country deployment.

China's Blockchain Ambitions: Exploring the Potential of the "Belt and Road" Super-Platform

Amidst its well-documented aversion to speculative digital asset trading, China remains steadfast in its exploration of blockchain technology's transformative potential. This week, a significant event in Shanghai witnessed representatives from the Conflux Network, a prominent blockchain project, showcasing their platform as part of a broader initiative to establish a "super-large-scale blockchain basic platform for the Belt and Road."

This high-profile demonstration, held on March 30, convened a distinguished gathering that included delegates from the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, Fudan University, and Shanghai Maritime University. Notably, representatives from the Ministry of Industry and Information Technology's Industrial Development Promotion Center and the Shanghai Science and Technology Commission were also in attendance.

Conflux Network, a "PoW/PoS hybrid blockchain without barriers" launched in November 2020, boasts exceptional scalability, security, low fees, and compatibility with regulatory frameworks. Its unique architecture employs "tree graphs" for parallel transaction processing, reducing confirmation times. The project's native asset is the $CFX token.

According to Conflux Network's announcement, the event revolved around addressing technical requirements arising from China's "Belt and Road" initiative. This ambitious government program aims to enhance physical and electronic trade routes globally. The primary goal was to develop a blockchain platform and companion applications tailored to these specific needs, enabling "multi-country deployment and multi-subject collaborative supervision" while fostering "cross-border cooperation in the economic, trade and cultural fields." Notably, these functions can be supported by any open-blockchain network.

While some technology news outlets have interpreted this event as a sign of the Chinese government's renewed interest in blockchain technology, despite its stringent measures against speculative assets and mining activities over the years, it is crucial to note that this event does not constitute an official endorsement of any specific blockchain platform. The inclusion of "Belt and Road" in the event's title merely reflects its alignment with the initiative's goals and should not be construed as an indication of official participation in the B&R program.

It is important to emphasize that China has maintained a consistent interest in blockchain technology's development, despite its restrictions on ICOs (initial coin offerings) and other speculative digital assets. The country has hosted numerous conferences and initiatives dedicated to exploring the multifaceted benefits of blockchain.

The People's Bank of China (PBoC) has diligently conducted its own research on digital currencies since 2014, the same year the first "China bans Bitcoin" rumors emerged. Over the years, the PBoC has hinted at developing its own CBDC (central bank digital currency), a landmark initiative that came to fruition in 2020.

Officially known as "digital renminbi (RMB)," this CBDC has been widely referred to as the "digital yuan" or "e-CNY." It became the world's first CBDC-like asset to undergo public use trials. Notably, these trials involved the participation of e-commerce and IT giants like Alibaba and Tencent, as well as Huawei, JD.com, and the credit card company UnionPay.

While the digital RMB has garnered significant media attention within the blockchain industry, it is important to highlight that it is not built on a blockchain foundation. The PBoC has emphasized that the digital RMB is primarily intended to facilitate domestic cash transactions in daily life, not to replace bank account savings or challenge globally accepted currencies like the U.S. dollar.

In conclusion, China's continued exploration of blockchain technology, underscored by the recent "Belt and Road" super-platform demonstration, highlights the country's commitment to unlocking the potential of this transformative technology. While the focus remains on developing blockchain solutions that align with national and international initiatives, it is crucial to approach these developments with a nuanced understanding, ensuring that they do not overshadow the broader vision of blockchain's transformative potential across diverse industries and sectors.