The Ministry of Science and Technology of China approved the construction of the National Blockchain Technology Innovation Center. This approval shows that China’s interest in blockchain technology and other elements of Web3 continues although there is a bear market. The center will be opened in China’s capital city, Beijing. 

The Beijing Academy of Blockchain and Edge Computing, a re-known institution for creating the Chang’an Chain or ChainMaker blockchain, has a big role in the construction. Fifty corporations comprise the ecosystem that supports this blockchain, most of which are state-owned, including China Construction Bank and China Unicom. The ChainMaker is capable of transacting 240 million transactions per second (TPS), up from 100,000 TPS in 2021.

According to South China Morning Post which is a popular newspaper, the blockchain research center aims to focus on the location of blockchain technology for commerce and the national economy. The new center will work with Chinese domestic universities, research institutions, and companies.

China’s crypto interest

Although China decided to ban cryptocurrency trading in September 2021, the country wants to open this research center for studying blockchain technology. Some of the biggest Chinese companies are still making significant progress in developing blockchain-based goods, but there are strict restrictions on this technology for individuals in the country. 

When we look at the studies of Chinese companies in this industry, we can realize Alibaba’s progress, a Chinese multinational company dealing with e-commerce, Internet, retail, and technology. Alibaba partnered with Avalanche in December 2022 for the launch of validator nodes on Avalanche’s public blockchain platform in Asia. 

In recent years, China has actively promoted itself as a blockchain nation. According to the Chinese government, China accounts for 84% of all blockchain applications submitted globally as of September 2022. The approval rate is low, with only 19% of all submitted applications being approved even though the actual figures may not change significantly.

The Chinese government is also focused on establishing a central bank digital currency in addition to blockchain research. To encourage its use, e-CNY valued at millions of dollars has been distributed all around the country. However, as of October 2022, total e-CNY transactions had only reached 100 billion yuan ($14 billion).