China has decided to take a step further in blockchain technology following the ban on crypto trading in 2021. A recent report from China Daily highlighted that the country is planning to launch a research center blockchain innovation in Beijing.

The China Blockchain Innovation Research Center will work with local universities, blockchain experts and companies to explore core blockchain technologies.

China is ready to strengthen its digital infrastructure

According to the report, the research will yield results that will play an important role in supporting China's new digital infrastructure. The report notes that the innovation center will focus on blockchain's underlying theory, software and hardware of key technologies, including the underlying platform and verification network.

The Beijing Academy of blockchain and Edge Computing (BABEC) will be in charge of the new research organization. BABEC is famous for its ChainMaker blockchain. BABEC's ChainMaker has support from 50 business groups, including state-owned China Construction Bank (China Unicom).

Currently, ChainMaker executes 240 million transactions per second (TPS). In 2021, it processed 100,000 TPS. BABEC is a leading company in blockchain technology, so it has been trusted by the state to be in charge of the new research organization.

Despite China's tightened stance on cryptocurrency trading, the country has been active in blockchain innovation and China even boasts of being a blockchain country. In September 2022, the Chinese government announced that the country accounts for 84% of all blockchain applications filed worldwide.

While this statement may not be accurate, the approval rate of submitted blockchain applications is also relatively low. Currently, only 19% of all applications are approved.

Updates on the development of China's CBDC coin

Blockchain technology and the CBDC project have become trademarks of the Chinese government. As for China's CBDC development, the central bank has deployed the electronic yuan (e-CNY), worth millions of dollars, nationwide to promote CBDC adoption. According to a report, China's central bank launched about 200 operations for e-CNY nationwide during the holiday period.

These activities aim to promote consumption. In this pilot, many Chain cities launched 180 million yuan ($26.5 USD) worth of CBDC in consumer discount and subsidy programs. Global Times, a Chinese English-language news outlet, cited cities such as the local government of Shenzhen that gave out more than 14.7 million electronic CNY to subsidize the food service industry.

China has made several efforts, including setting targets for various cities to increase CBDC usage. Another report noted that Hangzhou city issued e-CNY vouchers worth 80 yuan to each resident on January 16. The city gave away a total of 4 million yuan ($590,000 USD). ) e-CNY.

Additionally, on February 1, senior officials of the ruling party in Suzhou city set a speculative key performance index through the end of 2023. These officials are expected to deliver e-CNY epidemic worth 2 trillion yuan ($300 billion) in the city by the end of 2023.

Their goals are lofty for a single city, given that total e-CNY transactions are unlikely to exceed 100 billion yuan ($14 billion) by October 2022, two years after the launch of the CBDC .

The CNY e-wallet application has the ability to send red envelopes to give away money to attract new users. In early January, the app also received an update that allows users to make wireless payments using Android phones.

Over the years, China has now become a world-famous technology hub. With the new blockchain innovation research center, China can go further and become even more successful.

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