• China is set to launch a research center for blockchain innovation.
• The focus of the research will be on basic blockchain theory, key technologies, and their software and hardware.
• The Chinese government has already launched e-yuan (e-CNY) across the country to promote the CBDC project.
China has decided to move deeper into blockchain technology after its ban on cryptocurrency transactions in 2021. A recent report from China Daily noted that the country is about to launch a research center for blockchain innovation in Beijing – the National Blockchain Innovation Center.
The research center will work with local universities, blockchain experts, and firms to explore core blockchain technologies. This includes basic blockchain theories, key technologies‘ software and hardware, basic platforms and verification networks. The Beijing Academy of Blockchain and Edge Computing (BABEC) will take charge of the new research institution. BABEC is famous for its ChainMaker blockchain which currently executes 240 million transactions per second (TPS).
Despite China’s hawkish stance against cryptocurrency trading, the country has been active in blockchain innovation. In September 2022, the Chinese government claimed that it accounted for 84% of all filed blockchain applications worldwide; however only 19% had received approval so far. To promote adoption of its Central Bank Digital Currency (CBDC), or e-yuan (e-CNY), worth millions of dollars have been rolled out across China by its central bank already.
China prides itself as a nation dedicated to developing blockchain technology further; hence why it has placed BABEC in charge of this new research institution – an organization renowned for leading development when it comes to this field of digital infrastructure building blocks.
In conclusion, although China banned cryptocurrency trading back in 2021 it is clear that its commitment towards furthering digital infrastructure development through increased investment in Research & Development within the field of blockchain technology remains strong and unwavering given recent announcements regarding innovative projects like the National Blockchain Innovation Center being established in Beijing this year.