China has set up a Blockchain Technology Center in Beijing
Beijing Academy of Blockchain and Edge Computing would be managing the National Blockchain Center of China
blockchain technology and regulating cryptocurrencies, China is on a different trail with a complete ban on cryptocurrencies.
However, this stance of China completely contradicts its policy towards blockchain technologies.
As per recent reports, China has set up a Blockchain Technology Center in its capital Beijing. This blockchain tech center is being developed to create a network of shared ideas with universities, think tanks, state governments, and blockchain businesses. The project is aiming to broaden the common knowledge about blockchain technology and introduce the latest government projects to the masses.
Beijing Academy of Blockchain and Edge Computing would be managing the National Blockchain Center of China. BABEC is well known for developing ChainMaker Blockchain which has facilitated the operations of China Construction Bank of China Unicom. ChainMaker also claimed that it has technology that guards its blockchain networks against quantum attacks and provides security via a digital signature algorithm.
Why did China Ban Cryptocurrencies?
As per the official sources, China has restricted the use of cryptocurrencies to prevent their illicit use in money laundering, and financial crimes This ban on decentralized cryptocurrencies was ‘necessary’ to avoid financial instability in China’s local markets. However, experts suggest that cryptocurrencies had become the bone of contention for the government of China.
Cryptocurrencies were facilitating the unrestricted movement of financial assets not only within China but also internationally. This massive outflow of funds from China was a major headache for its authority as it did not want to lose control of the movement of money within its economy.
Apart from that, China was also working on its CBDC project and wanted a market that can readily accept its digital currency. However, competing with the popularity and use cases of decentralized crypto was not easy. These were the main reasons that China completely banned all cryptocurrency transactions in the country.
Will National Blockchain Center Revoke the Crypto Ban in China?
As per the stakes are concerned for the Republic of China, it is highly unlikely that the National Blockchain Center would work towards bringing back cryptocurrency to China. The main aim of NBC China would be to assist state-owned businesses and organizations to implement blockchain technology in their operations.
National Blockchain Center will work towards making China a blockchain-ready nation to invite more investments from across the world. China is actively marketing itself as a blockchain nation and pushing the technology in all of its sectors to gain the first mover advantage among other economies.
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