In a complete 360-degree turn of events, Chinese authorities have decided to go all in into Web3 and blockchain despite the ongoing crypto ban in the country.
China’s Strategic Pivot: Embracing Web3
China, known for its stringent stance on cryptocurrencies, is now aggressively pursuing the development of Web3 and blockchain technologies. Despite imposing a ban on crypto mining and trading, the country’s authorities are signaling a strategic shift towards decentralized technology.
One of the primary objectives is to fortify the policy framework surrounding Web3 technologies, ensuring both growth and regulatory oversight. Additionally, the document references official guidelines on blockchain technology and ongoing innovation pilots exploring applications from trade finance to intellectual property.
Chinese Authorities Embrace Web3 & Blockchain
China’s Ministry of Industry and Information Technology is at the forefront of this shift, aiming to position the country as a leader in the realm of decentralized technology.
Yin Hejun, the Minister of Science and Technology, emphasized the government’s commitment to Web3 development in a written response to the National Committee of the Chinese People’s Political Consultative Conference (CPPCC) proposal.
He writes,
“The proposals on strengthening resource support for Web3 technology research and development, strengthening technology supervision and management, encouraging international cooperation, and strengthening publicity and promotion are forward-looking and strategic and highly compatible with the key work of the Ministry.”
New Policies To Accelerate Adoption
The Ministry of Science and Technology, alongside other governmental bodies, has introduced policies and standards to expedite the adoption of blockchain technology. Local programs in major cities like Beijing and Shanghai are actively fostering Web3 innovation. These initiatives create a supportive environment through guidelines, committees, and targeted programs to seize opportunities in this burgeoning field.
This recent push for Web3 is part of a broader initiative by the Ministry of Industry and Information Technology. In September, the Ministry unveiled a comprehensive 3-year action plan focused on the Metaverse.
The plan aims to incubate three to five metaverse startups with global significance by 2025, showcasing the government’s commitment to embracing decentralized technologies.
The Paradox: Web3 vs. Digital Yuan Surveillance Concerns
China’s newfound embrace of Web3 stands in stark contrast to its previous hardline stance on cryptocurrencies. However, concerns persist, particularly regarding the digital yuan, the country’s central bank digital currency (CBDC).
Despite being positioned as an advanced payment mechanism, the digital yuan raises apprehensions due to its potential for unprecedented surveillance and control by government authorities.
Therefore, China’s proactive approach to Web3 and blockchain signifies a strategic move toward technological leadership. While the paradox of banning certain crypto activities remains, the government’s initiatives reflect a broader commitment to innovation and global prominence in emerging technologies.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
