Chinese Government Backs Blockchain Amid Crypto Ban

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China is looking to train 500,000 blockchain professionals after launching a new national blockchain research center.

The recently inaugurated research center in Beijing is approved by the Chinese Ministry of Science and Technology.

It will work closely with universities, technology companies and other research institutes to foster the development of the country’s blockchain and Web3 industries.

Separating blockchain from digital assets

Of course, probably the best-known application of blockchain technology is digital assets. Yet, the Chinese government has taken a hard line on cryptocurrencies and banned crypto trading in 2021.

As such, supporting the country’s blockchain sector means delineating the technology from its cryptocurrency use cases.

According to the South China Morning Post, in addition to training new blockchain professionals, the center also aims to establish a national blockchain network. This will connect existing blockchains in China and promote cross-chain development.

Examples of Chinese blockchains include ChainMaker, also known as ChangAn chain.

ChainMaker is an open-source platform created by the Beijing Blockchain and Edge Computing Academy. The government-backed research institute is also playing a leading role in the new centre.

Among the entities looking to realize the potential of the ChangAn chain is the State Grid, which hopes to use it to record carbon lifecycle data on the chain.

Meanwhile, Chinese healthcare players are collaborating on the medical channel Xiaotong. Built using ChainMaker, Xiaotong Medical Chain is designed to create reliable data links.

Through the platform, medical institutions, government authorities and insurers will be able to share information through a verifiable and cryptographically secured channel.

Chinese digital asset firms seek refuge in Hong Kong

As the Chinese government emphasizes alternative use cases for blockchain technology, Chinese digital asset firms have had to find ways around the country’s crypto ban.

Moreover, the demand for cryptocurrencies remains strong among the Chinese population. And the blanket ban on crypto trading has proven difficult to enforce.

One strategy that has proven successful for some companies is to relocate operations from mainland China to Hong Kong.

Contrary to the stance taken by Beijing, Hong Kong has cultivated a hospitable climate for cryptocurrency businesses. And some of the biggest crypto firms in the world now have offices there.

For example, companies like Huobi have expanded their presence in the city. This is despite being nearly crippled by the 2021 crypto ban. But thanks to Hong Kong’s crypto-friendly policies, Huobi and his peers have now regained some of their mojo.

Disclaimer

In accordance with the guidelines of the Trust Project, BeInCrypto is committed to providing impartial and transparent reports. This news article aims to provide accurate and timely information. However, readers are urged to independently fact-check and seek professional advice before making any decisions based on this content.

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