China has been once regarded as a frontrunner in adopting blockchain technology after the Chinese President Xi Jinping designated it as a growth sector in 2018. This resulted in a significant increase in blockchain salaries across the nation. However, in recent years, the enthusiasm for blockchain in China has waned, prompting the government to reconsider its approach.
In an attempt to reignite the blockchain spark, Beijing has recently opened the new National Blockchain Research Center, with plans to train half a million new “experts” in the field. The center, created in cooperation with the Ministry of Science and Technology, aims to ensure that blockchain technology takes a central role in China’s digital economy. To achieve this, it will collaborate with universities and research institutes across the country, as well as partner with IT companies.
Aside from developing professionals, China has also unveiled plans to launch a national blockchain network solution. This move is intended to integrate existing blockchain protocols to provide support for various industries. However, experts like Professor Zheng Zhi Ming believe that the current state of blockchain in China is plagued with issues such as “blockchain islands.”
“Blockchain islands” have formed as a result of different companies and sectors constructing their closed-chain blockchain networks, due to the country’s ban on most forms of crypto-related activities in 2017 and 2021. This restriction has also deprived Chinese businesses of opportunities within the global cryptocurrency and non-fungible token (NFT) sectors.
With a fragmented underlying technology network, China’s digital economy is being severely impacted by this “information island” phenomenon. The establishment of the National Blockchain Technology Center is expected to address these concerns, significantly enhancing China’s innovation capabilities and core competitiveness in the digital economy.
On the other hand, skeptics may question if the government’s renewed focus on blockchain is coming too late in the game. Will training half a million new blockchain professionals in conjunction with the development of a national blockchain network solution be enough to regain the blockchain fervor that China once possessed? Furthermore, with the restrictions on decentralized public networks like Ethereum, will China be able to compete in the international arena, or be limited to their privately-created networks?
China’s latest blockchain pivot aims to solidify their position within the global digital economy. It remains to be seen whether these efforts will be successful in overcoming the challenges posed by “blockchain islands” and reestablishing China as a blockchain powerhouse.
Source: Cryptonews
