Chinese government supports blockchain with crypto ban
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China wants to train 500,000 blockchain professionals after launching a new national blockchain research center.
The recently inaugurated research center in Beijing has been approved by the Chinese Ministry of Science and Technology.
It will work closely with universities, technology companies and other research institutes to promote the development of the country’s blockchain and Web3 industries.
Distinguish blockchain from digital assets
Of course, probably the most well-known application of blockchain technology is digital assets. Nevertheless, the Chinese government has taken a tough line on cryptocurrencies and banned crypto trading in 2021.
As such, supporting the country’s blockchain sector means demarcating the technology from cryptocurrency use.
According to the South China Morning Post, in addition to training new blockchain professionals, the center also aims to establish a nationwide blockchain network. This will connect existing blockchains in China and promote cross-chain development.
Examples of Chinese blockchains include ChainMaker, also known as Chang’An Chain.
ChainMaker is an open source platform created by the Beijing Academy of Blockchain and Edge Computing. The state-supported research institute also takes a leading role in the new centre.
Among the entities looking to realize the potential of the Chang’An chain is State Grid, which hopes to use it to record carbon life cycle data on the chain.
Meanwhile, Chinese health professionals are collaborating on the Xiaotong Medical Chain. Built using ChainMaker, Xiaotong Medical Chain is designed to create reliable data links.
By using the platform, medical institutions, public authorities and insurance companies will be able to share information via 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, China’s digital asset firms have had to find ways around the country’s crypto ban.
Moreover, the demand for cryptocurrency remains strong among the Chinese population. And the blanket ban on crypto trading has proven difficult to enforce.
One strategy that has proven effective for some companies is to relocate operations from mainland China to Hong Kong.
Contrary to the attitude of Beijing, Hong Kong has cultivated a hospitable climate for cryptocurrency businesses. And some of the world’s largest crypto firms now have offices there.
For example, companies such as Huobi have expanded their presence in the city. And that’s despite being nearly crippled by the 2021 crypto ban. But thanks to Hong Kong’s crypto-friendly policies, Huobi and its peers have now regained some of their mojo.
Disclaimer
In accordance with the guidelines of the Trust Project, BeInCrypto is committed to objective, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify the facts independently and consult with a professional before making any decisions based on this content.
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