China recently launched a national blockchain committee, which will steer the development of blockchain standards in the country. The committee comprises 71 members and includes some of the biggest tech firms in China such as Baidu, Huawei, and Tencent.
An Effort to Create National Standards
According to the Ministry of Industry and Information Technology in China, the 71-member committee will be called the ‘National Blockchain and Distributed Accounting Technology Standardization Technical Committee.’ It is going to lay the groundwork for the standardization of the blockchain in China. Besides that, it is going to steer China into the blockchain future as envisioned by Xi Jinping.
China has proven to be very hostile to the crypto sector. The country has managed to stop 99% of all Bitcoin trading in China. Today, virtually no crypto exchanges are operating in China. The country has outlawed crypto trading, although crypto mining is still allowed. The launch of this committee indicates that China is opposed to crypto but it has embraced the blockchain technology.
President Xi’s Vision
President Xi Jinping called on China to seize the opportunity that is presented by blockchain technology. He envisions a China where all industries in the country are powered by the blockchain. In line with this vision, various industries are represented in the committee. They include the banking sector, insurance sector, e-commerce, carmakers, the tech industry, the fintech sector, and many others. Besides that, various delegates form some of the leading universities in China and law enforcement agencies are present in the committee. One notable organization represented in the committee is the central bank of China and its digital Yuan project. It is an indication that China intends to go ahead with the launch of its digital Yuan. The committee is a representation of Xi’s belief that China should be a leader in the blockchain industry and all other industries.
Some of those included in the committee have been calling for the adoption of the blockchain at a national level. For instance, when Facebook unveiled Libra, a Huawei representative called on the Chinese government to come up with a CBDC to counter any influence that Facebook Libra might have on the economy. Huawei has been a major believer in the crypto world. In 2018, the company launched a crypto wallet dapp that could be installed on smartphones. Besides that, it launched a platform that allows companies and individuals to create and launch smart contracts and dapps.
The Committee Structure
The deputy minister of the MIIT will chair the committee. It aims to provide a more harmonious approach to the development of blockchain technology in China. Its membership includes five vice presidents of leading companies in China and executives from some of the largest universities in China.
The Ministry of Industry and Information Technology is asking for input from members of the public on the compositions of the committee. Those who wish to join the committee have been given until May 12, 2020, to make their submissions.
China is the only major economy in the world that has placed the blockchain at the heart of its development plans. The standards created by the committee will likely become the global standards for the blockchain. Thus far, China appears to be light years ahead of other nations when it comes to the blockchain in various metrics such as legislation and patents held.
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