The Chinese government unveiled an innovative project, led by Conflux Network, on April 1. It’s called the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.”
The revelation, disclosed in an X post by Conflux Network, marks a notable stride as China harnesses blockchain technology to streamline and fortify cross-border transactions.
The inaugural meeting for the ‘Belt and Road’ blockchain platform project on the Conflux Network was convened by the Shanghai Tree Graph Blockchain Research Institute.
The main focus of the project is to create a public blockchain infrastructure platform. This platform will be able to support the implementation of cross-border cooperation projects along the Belt and Road Initiative. It will provide the base for developing applications that… https://t.co/MkWgRY2G8A
— Conflux Network Official (@Conflux_Network) April 1, 2024
According to a source, on march 30, the Shanghai Tree Graph Blockchain Research Institute orchestrated a pivotal event, hosting the launch and demonstration of the implementation plan for a national critical research and development project titled “Ultra-large-scale Blockchain Basic Platform for the ‘Belt and Road,’” which was initiated on the Conflux Network. Spearheaded by the Shanghai Shutu Blockchain Research Institute, this groundbreaking endeavor saw enthusiastic involvement from esteemed institutions such as the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, Fudan University, Shanghai Maritime University, and other significant units.
The event garnered the attendance of key leaders and experts from prominent organizations including the Industrial Development Promotion Center of the Ministry of Industry and Information Technology and the Shanghai Science and Technology Commission, alongside members of the project consulting expert group, the project leading unit, and various project participants.
The overarching goal of this initiative, as outlined in the report, is to cater to the distinct characteristics and demands of the “Belt and Road” transnational cooperation landscape. With a focus on developing an advanced blockchain primary platform, the project aims to enable seamless deployment across multiple countries while facilitating collaborative oversight across diverse stakeholders. Additionally, it seeks to utilize this platform as a cornerstone for showcasing applications of cross-border cooperation in economic, trade, and cultural spheres.
Of particular note is the pivotal role played by the Conflux Network, a multifaceted blockchain ecosystem operated by the Conflux Foundation (Shanghai Tree-Graph Blockchain Research Institute). In March, Conflux Network played a pivotal role in beta-testing the Hong Kong Dollar (HKD)-backed stablecoin, AxHKD, developed by local fintech company AnchorX. This stablecoin, which underwent initial testing on the Conflux Network before its Ethereum deployment, is set to revolutionize the landscape of stablecoin transactions. Notably, Conflux Network stands as the sole regulatory-compliant public blockchain in China, underscoring its significance in the realm of blockchain technology within the country’s regulatory framework.
China’s recent foray into blockchain technology signifies a notable interest in the technological advancements despite its stringent stance on cryptocurrencies.
While China’s government has maintained a strict regulatory stance against cryptocurrencies, recent developments in the country’s blockchain initiative underscore a nuanced approach towards technology adoption amid the crypto crackdowns of 2017 and 2021. Despite the hurdles imposed on cryptocurrency trading and related activities, China’s focus on blockchain technology reflects a recognition of its potential benefits in various sectors.
Despite regulatory constraints, Chinese investors have shown increasing interest in cryptocurrencies as alternative investment vehicles, particularly during economic downturns and market uncertainties. This growing interest has fueled the emergence of an underground crypto market, where investors navigate regulatory restrictions to engage in trading activities. Platforms like OKX and Binance continue to serve as channels for mainland investors to access cryptocurrencies, while over-the-counter transactions provide additional avenues for participation.
Interestingly, mainland investors have also explored alternative means, such as leveraging forex quotas, to allocate funds into cryptocurrency accounts in Hong Kong, leveraging the region’s more favorable regulatory environment. This trend has contributed to a significant uptick in crypto trading activity within China, as evidenced by the country’s notable rise in global peer-to-peer trade volume rankings.
Despite the regulatory challenges, Chinese tech giants like Tencent and Huawei are actively exploring opportunities in the Web3 space, leveraging their resources to support startups and initiatives in this burgeoning sector. These efforts demonstrate a strategic pivot towards blockchain-related innovations, even in the absence of direct involvement in cryptocurrency trading activities due to regulatory restrictions.
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Crypto trading is banned in mainland China, but investors use creative methods such as using bank cards from rural banks and overseas… pic.twitter.com/iloqwFa0ga
— Crypto Town Hall (@Crypto_TownHall) January 25, 2024
