China’s Groundbreaking Blockchain Initiative for Belt and Road Infrastructure

China’s Groundbreaking Blockchain Initiative for Belt and Road Infrastructure

China recently announced a significant initiative led by Conflux Network, focusing on creating an “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.” This groundbreaking move signifies China’s interest in utilizing blockchain technology to facilitate secure and seamless cross-border transactions. The primary goal of this project is to establish a public blockchain infrastructure platform that can support various cross-border cooperation projects along the Belt and Road Initiative.

According to reports, the Shanghai Tree Graph Blockchain Research Institute hosted a launch and implementation plan demonstration meeting for the “Ultra-large-scale Blockchain Basic Platform for the ‘Belt and Road'” project. This project, initiated by the Shanghai Shutu Blockchain Research Institute, received active participation from esteemed institutions such as the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, Fudan University, and Shanghai Maritime University, among others. The initiative attracted expert leaders from influential entities like the Ministry of Industry and Information Technology and the Shanghai Science and Technology Commission.

The core objective of this initiative is to address the specific characteristics and requirements of the “Belt and Road” transnational cooperation scenario. The project aims to develop an advanced blockchain primary platform capable of supporting deployment across multiple countries and enabling collaborative supervision across various subjects. Additionally, the platform is intended to serve as a foundation for showcasing applications of cross-border cooperation in economic, trade, and cultural domains.

Conflux Network, operating as a multichain blockchain ecosystem under the Conflux Foundation (Shanghai Tree-Graph Blockchain Research Institute), played a crucial role in the successful beta-testing of the Hong Kong Dollar (HKD)-backed stablecoin, AxHKD. This stablecoin, developed by local fintech company AnchorX, is scheduled to be launched on Conflux Network initially, followed by Ethereum. Notably, Conflux Network is recognized as the only regulatory-compliant public blockchain in China, making it a key player in the country’s blockchain landscape.

While China has implemented strict regulations against cryptocurrencies and crypto trading, the recent blockchain initiative highlights the country’s interest in blockchain technology despite its hostile attitude towards digital assets. Nevertheless, Chinese investors are increasingly turning to the crypto market as a safer alternative amidst economic downturns and a sluggish stock market. Despite the ban, mainland investors are finding creative ways to participate in crypto trading, including using bank cards from rural banks and overseas platforms.

The Chinese crypto market has witnessed a surge in activity, with mainland investors accessing cryptocurrencies like Bitcoin through centralized platforms and engaging in over-the-counter transactions. Some investors are capitalizing on Hong Kong’s favorable stance towards digital assets by leveraging their forex purchase quotas to move funds into cryptocurrency accounts. This underground crypto industry has led to a significant increase in the global ranking of the Chinese crypto market in terms of peer-to-peer trade volume.

Despite the ban on cryptocurrency trading, Chinese tech giants like Tencent and Huawei are actively involved in the Web3 space. These companies are leveraging their computing resources to support web3 startups, indicating a growing interest in decentralized technologies. Their involvement in the blockchain and cryptocurrency space showcases a diversified approach to navigating regulatory challenges while exploring innovative opportunities for growth and development.

Blockchain

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