Beijing blockchain

Beijing's government released a 145-page blockchain strategy in early July laying out a two-year roadmap to transform the city using the technology. The plan centers on improving coordination between

By Ray Crawford·17 July 2020·2 min read

Key Points

Beijing's government released a 145-page blockchain strategy in early July laying out a two-year roadmap to transform the city using the technology.
The plan centers on improving coordination between

Beijing's government released a 145-page blockchain strategy in early July laying out a two-year roadmap to transform the city using the technology. The plan centers on improving coordination between city districts and departments, and between the government and local businesses. The city has integrated blockchain into 140 government services, cutting paperwork by as much as 40 percent. After officials lifted lockdown orders and companies in affected sectors resumed operations, those using these streamlined communications raced past expectations.

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A Deloitte survey of Chinese respondents found that 73 percent ranked blockchain among the country's top five strategic priorities. Sixty-two percent identified industry-specific regulation as their leading concern for blockchain oversight. Beijing is banking on the technology for more than administrative functions. Local companies stand to benefit from more efficient operations and lower service costs through blockchain-based systems.

China positioned itself as an early blockchain leader. A 2018 PWC report identified the nation as one of the world's most advanced blockchain developers, with analysts forecasting China will claim the top position for blockchain development within the next three to five years. The government recognized the value in blockchain from the start and continues to advance development across multiple platforms.

To support this growth, Beijing established a fund to back blockchain startups while distributing grants to established firms and bringing new companies into the space. Hainan province, operating as a special economic zone, incorporated incentives into its regulatory framework to attract large foreign operators. That momentum extends to workforce development as well: China's Ministry of Human Resources and Social Security certified blockchain developers as a legitimate occupation in high demand.

On January 14, Chinese experts convened to discuss how blockchain might strengthen the country's Social Credit Score system, which rates individual behavior and assigns corresponding rewards or penalties. Because blockchain records cannot be modified, experts said the technology would cement that system in place. Yet Beijing's new blueprint makes no mention of integrating blockchain into social credit scoring. The system has attracted criticism from abroad. Critics say authorities have used it to target journalists and members of ethnic minority groups.

MiningPool content is intended for information and educational purposes only and does not constitute financial, investment, or legal advice.

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