Blockchain technology arrives in China

Yesterday, China launched the Blockchain-based Service Network (BSN), a trans-regional public infrastructure network to improve the use of blockchain technology across the country for the development of smart cities and the entire digital economy. 

According to reports, those responsible for launching the new BSN network are the State Information Center (SIC) – China Mobile, China UnionPay and other institutions.

In this regard, the Deputy Director of SIC, Zhang Xueying, said:

“Featuring controllable security, independent innovation, openness and inclusiveness, the network will effectively reduce the technical and economic threshold for the application of blockchain. With the gradual adaptation of 5G, the Internet of Things, artificial intelligence and other technologies, the BSN will provide high-quality and customized services for the development of smart cities and the digital economy, and help nurture a batch of new industries or new business models based on blockchain technology”.

Furthermore, together with the launch of the blockchain project, beta tests have already been started on the network with all the contents, applications and related resources until March 2020. 

The new network seems to be a completely institutional recognition of blockchain technology as an infrastructure, a rather unexpected interest on the part of the nation famous for the ban on cryptocurrencies.

Despite the not too crypto-friendly law, China has emerged as a territory with the most liquidity in the crypto market, while the People’s Central Bank of China (PBoC) has publicly declared that it is working on its own digital state currency.

It is allegedly a regulated cryptocurrency managed by the People’s Bank of China, based on blockchain. At the moment, there is no launch date or technical details to clarify its operation.

The governor of the central bank, Yi Gang, has simply given his assurance that the management will be centralised.