• Trading in cryptocurrencies prohibited since 2019
• Opening of a blockchain research center in Beijing
• Trained 500,000 blockchain experts
Trading in cryptocurrencies such as Bitcoin, Ethereum, Ripple & Co. has been strictly prohibited since 2019. NFTs are allowed as long as they are bought with yuan only and are not resold for profit. Despite this, China is striving for technological independence and now wants to invest in a new national blockchain research center in Beijing.
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Fraudulent intentions and excessive power consumption
In September 2021, the People’s Republic of China’s central bank banned cryptocurrency trading, despite the country’s long leadership in bitcoin mining. The government gives two essential reasons for the ban: First, the power consumption is too high. In China, entire coal-fired power plants are used to power server farms.
Second, there would be too much criminal cryptocurrency trading. The ban protects the “economic, social and financial order,” according to the central bank’s argument, as reported by Deutschlandfunk Nova.
Further development of the blockchain industry
According to the South China Morning Post, the Chinese government has now announced the opening of a national blockchain research center in Beijing. Half a million specialists are to be trained there by 2025. Zhiming Zheng, a professor at the Faculty of Systems Sciences at Beihang University, sees the center’s task as connecting numerous blockchain use cases in the country (blockchain islands) into a unified network, as cryptopolitan writes. “Connecting blockchain application platforms and aggregating blockchain application ecology will greatly improve blockchain innovation capabilities and core competitiveness.”
According to SCMP-Tech, the center is operated by the Ministry of Industry and Information Technology, Tsinghua University and the China Academy of Information and Communications Technology and will be responsible for the research, development and application of blockchain technology. Industrial blockchain solutions are to be developed.
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