China released a development plan that identifies four major areas of adoption for blockchain applications.
China Recognising Blockchain’s Role and Potential
China’s Office of the Central Cyber Security and Information Committee of the Ministry of Industry and Information Technology (MIIT) released a document which outlines the guides for adoption of a fast rising technology to be used for industrial development. In its support of the use of blockchain, MIIT acknowledges the role of blockchain in the age of information technology.
The four areas for adoption have been identified as the economy, finance, industrial development and public services. MIIT recognises that publication, traceability, data sharing and supply chain management are use cases for blockchain that can impact the economy. It also alluded to the fact that bridges between blockchain and emerging technologies such as cloud computing, artificial intelligence and the internet will likely benefit the financial sector. Public services on the other hand can embrace blockchain adoption for smart cities and government services. Blockchain based ledgers would improve on documentation for government services such as the taking of judicial deposit, entry in the civil registry and administrative law enforcement.
Baby Steps Towards Blockchain Adoption
On June 30, 2021 Beijing unveiled its action plan titled ‘Beijing Municipal Blockchain Innovation Development Action Plan (2020 – 2022)’. In this plan, the local government declared its vision to lead the industry in four areas, namely, blockchain technology innovation, application, industry development and talent pool by 2022. Although this is a local government initiative, it exhibits the willingness for state sponsored blockchain initiatives.
In the plan, Beijing will be launching two funds, a Blockchain Industry Investment Fund which is part of the larger Beijing Municipal Tech Innovation Parent Fund to spur the growth of projects using state investment and social capital. This initiative aims to connect blockchain projects to the capital markets and entourage public listings of strong companies.
The fact that the Chinese authorities recognise the need for inclusion of the blockchain technology into the capital markets, is the first step towards inclusivity. Whilst detractors are critical of these initiatives, a policy blueprint is the first step. It wouldn’t be unreasonable to expect a huge country and one of the largest economies in the world like China to adopt a decentralised technology that is both immutable and permissionless. This first step would pave the way forward for a robust financial future.
Centralizing a Blockchain Framework
In mid May, 2021 China announced the framework of Blockchain-Based Service Network (BSN) that will support decentralised applications or tools built on 15 public blockchains. The most apparent feature in the network is the level of government control. One company known as Red Date Technology has been crucial in spearheading this government sponsored initiative.
The CEO of Red Dates, Hifan Ye said, “One of our primary goals is to include as many blockchain frameworks as possible and make them accessible under one uniform standard on the BSN platform.”
This elaborates that the BSN platform was not meant to be a contained player within the Chinese commercial ecosystem. Hifan Ye further confirmed that they have been working with Cosmos (touted as the internet of blockchains) and Chainlink, a network of oracles, the whole picture is starting to form. The Chinese government is not preparing a platform to cater for domestic needs. It has a bigger plan and this plan is to prime itself for the global stage.
A Giant Stride for Blockchain Technology
Any moves from the world’s second biggest economy will not go unnoticed. Whilst the Chinese authorities are receiving a lot of criticism in the way they have dealt with the crypto market, many failed to see that in actual fact, there is a silver lining in the clouds. The question is no longer whether China will open its doors to the crypto market, the question is when.
Source : bsc.news
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