After the Chinese government announced plans to establish a new nationwide blockchain network, Conflux (CFX), a China-linked crypto project, surged. The coin’s price rose about 28%, and trading volume also saw notable fluctuations.
What did the document include?
A policy document issued on October 9 by the Central Committee of the Chinese Communist Party and the State Council set the goal of establishing a national blockchain network and an integrated nationwide computing-power network. Under the plan, China aims to integrate blockchain technology more comprehensively into its national digital infrastructure. Its priorities include data sharing, coordinating computing resources, and developing the digital economy.
The document, titled “Opinions on Developing New Quality Productive Forces,” calls for more comprehensive integration of the real and digital economies. The country plans to improve its data infrastructure, accelerate digital transformation in manufacturing, and support industrial internet projects. China will also continue its “Eastern Data, Western Computing” project, which aims to create an integrated computing network connecting data centers and computing resources across the country. The national blockchain network is expected to be one component of this massive infrastructure.
What did the document leave unspecified?
- It did not mention Bitcoin, Ethereum, or any other cryptocurrency.
- It did not specify whether the planned infrastructure would be a permissionless public blockchain with its own token.
- It did not specify the network’s technical architecture, launch date, budget, or operating entity.
Has China lifted its crypto ban?
No. The decision does not mean that China is changing its current approach to cryptocurrency trading or lifting its ban. China has long restricted crypto transactions while supporting the development of permissioned blockchains for government agencies, businesses, and industrial applications. The new network is likely to be used in areas such as public data sharing, digital identity, supply chain tracking, financial reconciliation, and industrial data verification. The National Development and Reform Commission’s plan for 2026–2030 had envisioned implementing a “national blockchain network construction project,” and the latest document confirms that this goal is included in the economic transformation plan at the highest levels of political and administrative leadership.
Why did CFX rise?
The announcement sparked interest in Conflux, which is promoted as a public blockchain compliant with Chinese regulations. Market participants viewed it as one of the projects that could benefit from the expansion of China’s blockchain infrastructure, and its price rose about 28%.
- 24-hour trading volume was about $204 million, and total market capitalization was $357 million.
- Trading volume represents about 57% of market capitalization, indicating substantial buying and selling activity.
- The Relative Strength Index (RSI) rose to 63, indicating strengthening bullish momentum without yet reaching the overbought zone above 70.