A state-funded research institute in China has been established with the goal of examining the potential of blockchain and making fundamental advancements in the field.
According to a recent report from the regional Chinese publication South China Morning Post, the Ministry of Science and Technology of the nation has given the go-ahead for the construction of the National Blockchain Technology Innovation Centre, which will study how blockchain technology might be used in the national economy as well as for industrial applications.
According to the source, the center, which will have its headquarters in Beijing, “would concentrate on areas of blockchain involving core theory, software, and hardware, with the purpose of creating related essential technologies and industrial applications.”
The research facility will be run by the Beijing Academy of Blockchain and Edge Computing (BABEC), a company well known for creating the Chang’an Chain or ChainMaker blockchain.
Despite its strict position on cryptocurrencies, China has been a backer of the emerging blockchain technology. According to the Chinese government, 84% of all blockchain applications submitted globally as of September 2022 originate from China. But, only 19% of the total number of submitted applications are approved, indicating a low acceptance rate.
Blockchain would “play a key role in the next phase of technical innovation and industrial change,” Chinese President Xi Jinping predicted in 2021.
At the time, Xi noted that the use of blockchain technology has been expanded to a number of economic areas, including supply chain management, smart manufacturing, digital asset trading, digital finance, and the Internet of Things.
China’s two primary tech sector regulators, the Ministry of Industry and Information Technology (MIIT) and the Cyberspace Administration of China (CAC), stated in guidelines released in 2021 that the country aims to deploy blockchain widely across a variety of industries by 2030.
The Chinese regulatory authorities’ imposition of a total ban on cryptocurrencies and companies offering related services in September 2021 sent shockwaves through the cryptocurrency community. Only a few months had passed since the nation had stated that bitcoin mining was prohibited.
Blockchain Use Is Growing
Due to the fact that the technology offers a convenient and cost-effective way to send and receive payments, store data, and establish a credit history, blockchain usage has increased significantly over the past couple of years among numerous enterprises and nations.
According to reports, the California Department of Motor Vehicles revealed last month that it intended to adopt blockchain technology for record-keeping, including the issuing of vehicle ownership and streamlining vehicle ownership transactions.
The World Economic Forum (WEF) expressed its belief that blockchain technology will continue to be a “integral” component of the contemporary economy in a report published earlier this year. The organization highlighted the numerous uses for crypto and blockchain technology, noting that this use is already noticeable in the financial services industry.
