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China starts testing blockchain technology in selected zones
China is actively implementing blockchain technology, and it is doing so at the state level. According to the authorities, the innovation should increase the efficiency of digital processes and improve their security, which is especially important given the increased number of cybercrimes. The country’s line ministry has begun testing blockchain technology, for which 15 pilot zones have been selected.
The areas selected for testing include several districts in Shanghai, Guangzhou, Beijing, and Chengdu, as well as parts of Guangdong and Sichuan provinces.
Sixteen government agencies, including two ministries – information technology and education, the central bank, and the department that regulates securities – are working together on the project.
At the same time as the pilot zones, 164 organizations across the country from various sectors of the economy have been selected, including tax services, government departments, educational institutions, hospitals, oil corporations, banks, and others. Blockchain-based pilots will be built into their standard processes.
According to the project’s author, blockchain has enormous potential to improve data exchange processes as well as optimize work operations for different sectors of the economy. Through the use of the new technology, standard costs for businesses can be reduced while increasing the efficiency of employee interaction.
The Chinese government has outlined a plan to develop blockchain technology in 2019. According to the authorities, it is the basis for further innovation and will help the country to maintain its leading position in the technology market.
Although China is actively adopting blockchain, the government’s loyalty does not extend to cryptocurrencies. Last fall, the government increased restrictions on digital money, banning mining and all crypto transactions in the country.
Meanwhile, Beijing is actively interested in other blockchain-based ecosystems, such as NFT. The local BSN platform, which is owned by the government, is developing an infrastructure for NFT transactions. In the future, the government intends to develop the use of non-interchangeable tokens and is building a state-of-the-art network for this purpose. The development of the BSN blockchain platform plays an important role in this. It is expected that soon it will enter the markets of Europe and the United States, at the end of 2021 the portal has already become available in Turkey and Uzbekistan. Developers from these countries have been given the opportunity to create applications based on the platform. BSN has open-source code, which allows the development of new blockchain products at a minimal cost. Thus, the management of the Chinese platform wants to conquer local markets and eventually, through Turkey, move into the European segment.