Following a savage crackdown on cryptocurrency two years ago that catalyzed an exodus of Bitcoin miners to the United States, Kazakhstan, Canada, and other nations, China is moving forward with an ambitious strategy to create its indigenous Web3 sector.
Despite its prohibition on crypto mining in 2021, China has discreetly allowed several blockchain and Web3 technology ecosystems to thrive on the mainland. Furthermore, Hong Kong’s new crypto legislation, which go into effect in June, and China’s permissiveness towards these developments suggest that the country may be eyeing economic growth in the Web3 and blockchain arena.
Municipal governments in at least 30 Chinese towns are now experimenting with Web3 and other upcoming technologies such as AI. Beijing’s local government recently announced the release of a Web3 white paper in Beijing’s “Silicon Valley,” also known as Zhongguancun.
The Beijing government will contribute $14 million each year for two years to help “the Celestial City” turn into a global powerhouse of Web3 innovation, with a focus on boosting the city’s push into the metaverse.
Tron founder Justin Sun celebrated China’s decision on social media as a big step towards recognising the revolutionary potential of decentralized systems and blockchain-based solutions.
However, the business is still in its early stages and faces numerous problems such as an inexperienced labour and a lack of legislation governing Web3, the metaverse, and blockchain networks.
China, on the other hand, announced a new national standard for blockchain technology on Friday. China also opened the National Blockchain Technology Innovation Centre in Beijing last month, which will serve as a platform to stimulate innovation in a Chinese industry that the government estimates earned 8.46 billion yuan last year.
Despite its promotion of Web3 and the metaverse, China’s global response to bitcoin remains unclear. The central bank issued its own digital yuan, although it has historically been hostile to decentralized monetary systems that can circumvent central authorities. Earlier this month, a television piece showcasing a Bitcoin ATM in the administratively independent colony of Hong Kong was aired by China’s state-owned broadcaster, only to be censored without explanation. Prior to the video’s removal, Binance CEO Changpeng “CZ” Zhao stated that uncommon situations like this usually result in “bull runs,” implying that China’s stance on cryptocurrency is softening.
