China’s Ministry of Industry and Information Technology (MIIT) is taking action to establish unified blockchain standards throughout the nation. The Ministry has set out an initiative to be implemented by 2025, aiming to further enhance the nation’s blockchain standards.
On Tuesday, a public consultation was initiated to seek stakeholders’ views on the most efficient approaches to enhance the national blockchain standard. People from “all walks of life” were invited to contribute their ideas on refining the regulation across the sector.
The Department of Science and Technology at the Ministry anticipates the public consultative process to last for one month, concluding on April 28. However, feedback from this process will be made available later.
Reasons for this Move
China seeks to uphold the principles outlined in General Secretary Xi Jinping’s instructions by establishing Guidelines for the Construction of Blockchain and Distributed Ledger Technology Standard Systems. These Guidelines are intended to provide clarity on the level of design required to ensure uniformity of blockchain systems among the operators and to promote the growth of a digital economy in China.
China is investing heavily in blockchain technology to support both its long and short-term economic and social objectives. To ensure efficient progress, a blockchain research center has been set up to facilitate collaboration among universities and help reach the goals.
China is home to a large majority (84%) of the global blockchain application market, with nearly 1,500 distributed ledger companies based in the country. However, only 19% of these applications have been officially approved.
Blockchain Technology Shines Despite Digital Currency Ban
China’s 2021 prohibition of digital currencies did not dampen the enthusiasm for blockchain technology in the nation. Despite the closure of numerous miners and crypto exchanges, other players in the industry have continued to succeed despite the odds.
And, despite the absence of clear regulations, the adoption of non-fungible tokens (NFTs) and blockchain-based gaming experienced a surge in popularity. In China, judicial precedent granted property rights to NFTs, while gaming activities were also allowed to continue, as long as they did not promote any speculation.