Chinese government calls for faster blockchain development

China's State Council, which often gives the impression of being anti-digital, has officially directed local financial authorities to focus on and speed up the development and commercialization of blockchain technology.

The government made its intentions clear last week with the following statement:

“To build a regional stock market in Guangdong, in line with the opening up of the capital market, the timely participation of Hong Kong, Macau and international institutions in investment is necessary. We will develop financial technology and accelerate the pace of research and development implementation of blockchain within the framework of current legislation.”

China used to be the center of mining and trading of digital currencies. Four of the ten largest crypto exchanges in the world are from China. Despite this, the government carried out repression that destroyed private industry. In China, it is illegal to conduct ICOs or trade on crypto exchanges. 

China produced most of the bitcoins, but this is now prohibited. The government has ordered banks to stop funding cryptocurrency transactions. Last month, local police made arrests at a major cryptocurrency conference.

At the same time, the government is trying its best to accelerate the development of blockchain technology on its own terms - collaborating, for example, with projects like NEO, which many consider the new Ethereum. Another version of what kind of cryptocurrency China wants to make is Qtum.

China is funding multi-billion dollar blockchain initiatives like the Global Blockchain Innovation Fund, which cost the Hangzhou city government $1.6 billion, according to CCN. Another example is the trial run of a free trade zone in Guangdong province, which is home to 71 blockchain startups.