China Underground > China Finance > China adopts blockchain as a core technology

China adopts blockchain as a core technology

  • 2
  •  
  •  
  •  
  •  
  •  

China is actively adopting blockchain, an underlying technology with a wide range of applications, and sees it as the new frontier of innovation in industries ranging from finance to manufacturing and energy.

Xi Jinping, general secretary of the Communist Party of China Central Committee, highlighted blockchain last week as a core technology, urging more efforts to stimulate the development of blockchain technology and industrial modernization.

Blockchain, a digital ledger system, uses advanced cryptographic techniques to generate a permanent and transparent record of exchanges to keep track of transactions.

Xi’s remarks have fueled a significant surge in stocks of companies in related sectors, and China is abuzz about blockchain.

There was a difference in the performance of listed companies in the blockchain industry as of Wednesday.

With its wide range of applications, blockchain is expected to bring innovation to a variety of sectors, including finance, supply chain management, industrial internet, energy, and copyright, according to a report by Evergrande Think Tank.

Blockchain can help traditional financial institutions reduce operational costs, and with the support of such technology, individuals will be able to conduct transactions in a safe environment, the report said.

China’s monetary authority began research into and application of blockchain technology in 2016.

“Trade finance is a suitable scenario for using blockchain, and the pilot program will be expanded,” said Li Wei, director of the Science and Technology Department of the People’s Bank of China (PBOC), the country’s central bank.

The PBOC is examining blockchain applications in intellectual property transactions, as well as in interbank financial transactions, Li said.

Blockchain should not be a concept to stimulate speculative investment or become a cover for illegal financial activities, said Sun Tianqi, chief accountant of the State Administration of Foreign Exchange, but instead should find its position in supporting the real economy.

 

If you like this article, please help us by making a donation so that we can continue our work. Please help keep us independent.

 

Featured image: pexels

Source: ecns

 


Subscribe to China Underground and get the free magazine 'Planet China'

* indicates required

View previous campaigns.

By clicking Sign Up, you agree to our terms and conditions.

You can unsubscribe at any time by clicking the link in the footer of our emails.

We use Mailchimp as our marketing platform. By clicking below to subscribe, you acknowledge that your information will be transferred to Mailchimp for processing. Learn more about Mailchimp's privacy practices here.

China’s top mobile operators switch on commercial 5G services

Next

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.