- The Chinese National People’s Congress stressed on the importance of the development of the blockchain industry and proposed introducing a government-led fund.
- The fund would encourage blockchain entrepreneurs and promote the modernization of the governance system.
- This proposal comes after the Chinese People’s Political Consultative Conference suggested the initiation of a pan-Asian regional stablecoin.
As the world continues to battle a global pandemic which has claimed circa 350,000 lives, economies are realizing the potential of using technology.
One country leading the world in attempt to recover from the post-Corona slump is the Chinese government which along with the National People’s Congress has been conducting annual sessions deemed Two Sessions. In the presence of almost 3,000 delegates, these meetings hear proposals with respect to legislation and governmental procedures.
The latest and the third in the series of sessions which took place on May 23 saw NPC deputy and director of the Institute of Applied Mathematics of Hefei University of Technology Jieqing Tan propose the launch of a government-led fund to support the growth of the blockchain sector in the country.
The development of the distributed ledger technology sector would boost the economy with the latest innovation, produce leading tech startups as well as encourage more blockchain-based businesses to thrive. Tan said it would also assist in the “[cultivation of] a number of quasi-unicorn enterprises” in the blockchain industry.
Challenges facing the Chinese tech startup ecosystem
Tan highlighted that the industry is witnessing a host of roadblocks including lack of talent force and information as well as scarcity of blockchain startups to begin with.
Furthermore, other challenges include “fragmentation of government data resources, uneven development of government affairs, lack of mutual trust foundation for government affairs coordination, and inadequate urban data supervision,” he added.
As a result, a blockchain-focused fund would encourage entrepreneurs to launch and fuel research and development in the sector. Tan said during the session:
“In such a market, only large enterprises are not enough, and a complete ecology is also required. After this epidemic, the entire blockchain layout enterprises will jump out of their own industries and integrate into more in the industry. “
In addition, Tan said it would also modernize the entire governmental system and improve the security and national sovereignty of the citizens. The early adoption of the technology could potentially make China a global leader in the sector and help the country tread towards a future operating through smart governance through “judicial electronic certificate storage platforms”, Tan added.
In order to achieve that goal, clear processes are required to be defined. “From the bottom technology standard, middle industry application development to the top-level system design, the national blockchain technology, industry and supervision three-dimensional strategic planning system should be well coordinated,” he added.
The latest proposal follows the previous session wherein a regional stablecoin was suggested by the People’s Political Consultative Conference.
China’s progress with respect to blockchain and crypto
Indeed, it’s no secret that China has come a long way in the scale-up of blockchain-based systems compared to other countries. The country is already working on a developing a central bank digital currency (CBDC).
Last year in October, President Xi Jinping emphasized on the importance of blockchain and the urgency for startups to embrace the new-age technology. Detailing on the various application of the technology, Xi asserted at the time that sectors ranging from fintech to healthcare and education to customs, should capitalize on blockchain and added that “we must take the blockchain as an important breakthrough for independent innovation of core technologies.”
While Tan is bullish about the future of Chinese blockchain-based companies, time will tell whether the country will be at the forefront of the technology.