Technique, not currency: China accelerates blockchain plan

China has big plans with blockchain technology. The country wants to build a national network by 2030 with which companies and governments can securely exchange data. This is evident from a new five-year plan that was published on Friday.

It is striking that China is investing heavily in the technology behind crypto coins, while trading in Bitcoin (BTC) and other cryptos remains prohibited.

The plan has been published by the Central Commission on Cyber Affairs, an influential body within the Chinese government. It states that China wants to invest heavily in digital infrastructure in the coming years.

An important goal is the development of a national blockchain network. With this, the country wants to improve data exchange between companies and government agencies.

The technology will also play a greater role in the financial sector and international trade. Especially in the Yangtze River Delta, an important economic region around Shanghai, China wants to expand its use.

In the Chengdu and Chongqing region, blockchain must be widely used in industry and agriculture.

In addition, the government wants to develop stricter technical standards and use blockchain more often for the secure exchange and trading of data.

The plans stand out because China has been strict against crypto coins for years. Trading Bitcoin and other cryptocurrencies through crypto companies remains prohibited in mainland China.

Nevertheless, Beijing sees great opportunities in the underlying blockchain technology. This allows data to be recorded and checked on a shared digital network.

The ambitions are not entirely new. In October 2019, President Xi Jinping called for more investment in blockchain. He considered the technology to be important for China's technological development.

In March of this year, the national blockchain network was included in the country's broader development plan. On 9 October, a new policy statement followed in which the construction was mentioned again.

With the five-year plan published on Friday, there is now also a clear deadline: the network must be largely ready by 2030.