China has announced its blockchain national data infrastructure, a state-backed framework designed to leverage blockchain technology for managing and processing data across various sectors.
This initiative is a part of the country’s broader strategy to integrate blockchain technology into its digital economy.
Importantly, the country is planning a full implementation of the infrastructure by 2029.
JUST IN: China plans to integrate blockchain technology into its national data infrastructure, aiming for full implementation by 2029. pic.twitter.com/CT7sqYHsiM
— Woody Lightyear 𝛑 (@WoodyLightyearx) January 9, 2025
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Implications For Blockchain Technology
China’s blockchain national data infrastructure represents a significant step toward mainstream adoption of DLT.
Unlike public blockchains such as Bitcoin or Ethereum, China’s infrastructure operates on a permissioned blockchain model. This means that while it utilizes decentralized ledger technology (DLT), it is centrally controlled by government authorities.
By developing its own blockchain standards, China encourage companies to adopt blockchain solutions tailored to this infrastructure.
While China is embracing blockchain technology, its stance on cryptocurrencies remains restrictive.
The country banned crypto trading and mining activities in 2021, citing concerns over financial stability and energy consumption.
This dichotomy between blockchain adoption and crypto regulation highlights China’s selective approach to leveraging DLT.
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China Continues To Crackdown On Crypto While Being Open To Blockchain Tech
The country banned crypto trading and mining activities in 2021, citing concerns over financial stability and energy consumption.
Intensifying its grip on crypto activities yet again, China recently introduced new foreign exchange rules that impose stricter scrutiny on crypto transactions.
According to a report from the South China Morning Post on 31 Decmeber 2024, banks are expected to monitor and report “risky foreign exchange trading behaviours.” This includes underground banks, cross-border gambling and illegal cross-border financial activities involving cryptocurrencies.
The announcement was made by the State Administration of Foreign Exchange. Banks have been mandated to track transactions based on the identity of individuals and institutions involved, the source of funds, and trading frequency. Moreover, they must implement risk-control measures to restrict services for entities flagged as engaging in such activities.
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