Key Takeaways
- China and other BRICS member countries are experimenting with and implementing blockchain to facilitate trade and economic infrastructure.
- Despite a mining ban, China is home to Bitmain, one of the largest Bitcoin mining firms in the world.
- Illegal Over-the-Counter crypto trading desks in China pulled tens of billions in value throughout 2024.
Blockchain technology, encryption, and smart contracts could be set to form the basis of a trusted data circulation system as part of China’s bold national digital infrastructure plans.
China has proposed using blockchain and smart contracts to meet its new aims, with new guidance touting blockchain as a major pillar of its future goals.
Blockchain for Data
According to the newly released “Guidelines for the Construction of National Infrastructure” by China’s National Development and Reform Commission (NDRC), China will begin piloting numerous data infrastructure technology goals by 2029.
More specifically, it seeks to create a unified and trustworthy infrastructure for data assets and transaction certificates. It also notes applications in digital identity, data traceability, privacy, and security.
In a press briefing, Zhulin Shen, deputy director of the National Data Administration, explained that the data infrastructure project could draw some 400 billion yuan, or roughly $54.5 billion, in annual investments over the next five years.
The guidelines also actively encourage “industries and local governments” to begin developing new tech infrastructure, “such as blockchain networks and privacy-protecting computing platforms.”
The nation is no stranger to blockchain. It is increasingly turning to blockchain for use in its Belt and Road Initiative, as well as for trade and economic purposes amongst BRICS member states.
China on Crypto
Since 2017, China has been rather public about its anti-crypto, pro-blockchain approach.
Despite being home to one of the largest Bitcoin mining firms in the world, Bitmain, the firm behind the Antminer, the nation’s government effectively banned all crypto-related activities in 2021.
A recent legal ruling has since clarified that individuals aren’t prohibited from holding crypto. However, commercial/business activities involving crypto, such as initial coin offerings (ICOs), trading, and mining, remain illegal.
Despite announcing it would cease all business activities following the 2021 ban, China’s Bitmain remains in business.
Though it’s unclear how firms such as Bitmain continue to operate, everyday users are taking other routes to continue with crypto trading activities.
Chainalysis research highlights that Chinese over-the-counter (OTC) trading desks continue to grow, drawing almost $50 billion in value in Q1 and Q2 2024.
Crypto is incredibly popular in China, and Hong Kong’s latest push to adopt crypto and its approval of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in 2024 could encourage a shift of policy in the mainland, though this is unlikely.
However, as more BRICS members continue to introduce cryptocurrency regulations and infrastructure, China may have a change of heart. However, only if it serves the greater aims of BRICS and China.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
