The Chinese government, through the initiative led by Conflux Network, announced a groundbreaking project on April 1 to create an “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.” This platform aims to facilitate seamless and secure cross-border transactions along the Belt and Road Initiative. The project, hosted by the Shanghai Tree Graph Blockchain Research Institute, involved collaboration from prestigious institutions such as the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, and others. The primary objective of the initiative is to address the unique characteristics of the Belt and Road transnational cooperation scenario by developing an advanced blockchain platform that supports multi-country deployment and collaborative supervision across multiple subjects.
In the midst of China’s strict stance against cryptocurrencies, the government’s new blockchain initiative reflects a growing interest in blockchain technology while maintaining hostility towards digital assets. Despite the ban on crypto trading in mainland China, Chinese investors are turning to cryptocurrencies as a safer alternative amidst economic downturns and a sluggish stock market. Mainland investors are finding innovative ways to participate in the crypto market through centralized platforms like OKX and Binance, as well as over-the-counter transactions. Some investors are also utilizing their forex purchase quotas to move funds into cryptocurrency accounts in Hong Kong, taking advantage of the territory’s favorable stance towards digital assets.
Chinese tech giants such as Tencent and Huawei are venturing into the Web3 space, leveraging their computing resources to support web3 startups despite the ban on cryptocurrency trading in China. The regulatory measures have not deterred these companies from exploring opportunities in the blockchain and decentralized technology sector. In March, Conflux Network, operated by the Conflux Foundation, successfully beta-tested a Hong Kong Dollar-backed stablecoin, AxHKD, which is set to be launched on Conflux Network followed by Ethereum. Conflux Network is recognized as the only regulatory-compliant public blockchain in China, highlighting the potential for blockchain technology in the country despite the restrictions on cryptocurrencies.
The Shanghai Tree Graph Blockchain Research Institute hosted a launch meeting for the “Ultra-Large Scale Blockchain Basic Platform for the Belt and Road” project, which aims to create a public blockchain infrastructure platform to support cross-border cooperation projects under the Belt and Road Initiative. The initiative received active participation from various institutions and expert leaders, including the Industrial Development Promotion Center of the Ministry of Industry and Information Technology and the Shanghai Science and Technology Commission. The project’s primary goal is to develop an advanced blockchain platform capable of facilitating cross-border cooperation in economic, trade, and cultural domains, enabling multi-country deployment and collaborative supervision across multiple subjects.
The Chinese government’s interest in blockchain technology is evidenced by initiatives like the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” which aims to leverage blockchain for secure cross-border transactions. Despite the ban on cryptocurrency trading in mainland China, Chinese investors are finding ways to access the crypto market through creative means. The surge in crypto trading activity among mainland investors has led to a thriving underground crypto industry, with mainland investors increasingly turning to digital assets as a safer option. Chinese tech giants, despite the regulatory restrictions, are venturing into the Web3 space to support blockchain startups and explore opportunities in decentralized technologies. Conflux Network, recognized as a regulatory-compliant public blockchain in China, continues to make strides in the blockchain sector, demonstrating the potential for blockchain technology in the country.
