Crypto News

Chinese Government Launches New Blockchain Infrastructure Platform Led by Conflux

Conflux Network will spearhead a revolutionary project called the “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative,” which the Chinese government unveiled on April 1.

Conflux Network announced the news in an X post, and it marks a major move in the direction of China using blockchain technology to make international payments easier and safer.

‘Belt and Road’ Blockchain Platform Project Launched on Conflux Network at Shanghai Tree Graph Blockchain Research Institute

Develop a public blockchain infrastructure platform; that is the project’s primary goal. As part of the Belt and Road Initiative, this platform can facilitate the launch of cross-border cooperation initiatives. It will serve as the foundation for creating apps that… The link is here:

— Official from the Conflux Network (@Conflux_Network) April 1, 2024

A local source has reported that the “Ultra-large-scale Blockchain Basic Platform for the ‘Belt and Road,'” a national critical research and development project, was launched on Conflux Network on March 30. The launch and implementation plan demonstration meeting was hosted by the Shanghai Tree Graph Blockchain Research Institute.

In this endeavour spearheaded by the Shanghai Shutu Blockchain Research Institute, esteemed organisations like the China Academy of Information and Communications Technology, Shanghai Jiao Tong University, Fudan University, Shanghai Maritime University, and others were actively involved.

Participants in the meeting included leaders from prominent organisations, such as the Shanghai Science and Technology Commission and the Industrial Development Promotion Centre of the Ministry of Industry and Information Technology. Other attendees included members of the project consulting expert group and the project leading unit, as well as other project participants.

As stated in the study, this initiative’s principal goal is to cater to the specific traits and demands of the “Belt and Road” scenario of transnational collaboration. An advanced blockchain primary platform that can allow deployment across countries and enable collaborative supervision across subjects is the goal of this project. In addition, it plans to use this platform as a springboard to showcase cultural, economic, and trade-related cross-border collaboration in action.

The Conflux Foundation (Shanghai Tree-Graph Blockchain Research Institute) runs the Conflux Network, a multichain blockchain ecosystem. It was instrumental in March’s successful beta-testing of AxHKD, a stablecoin backed by the Hong Kong Dollar (HKD). The local finance firm AnchorX is launching their stablecoin on the Conflux Network first, and then Ethereum. The Conflux Network stands alone among China’s public blockchains as one that abides by all applicable regulations.

In spite of China’s hard stance on cryptocurrencies, the country’s blockchain initiative shows that it is interested in technology.

Crypto as a Haven for Chinese Investors Amid Economic Downturn

Traders in China are seeking refuge in Bitcoin as the country’s economy takes a nosedive.

Even though crypto trading is illegal on the Chinese mainland, investors find ways around the ban, such as using bank cards issued by rural banks or even foreign countries. Twitter image:

This was tweeted by Crypto Town Hall on January 25, 2024.

New interest in blockchain technology belies mainland China’s continued hostility towards cryptocurrencies, as shown by the recently established blockchain initiative, which follows crackdowns on the crypto industry in 2017 and 2021.

Nevertheless, in times of economic slowdown and a stagnant stock market, Chinese investors are increasingly seeking refuge in the cryptocurrency market, despite these regulatory efforts. Because of this, the underground cryptocurrency market has flourished, and mainland investors are constantly coming up with new ways to trade cryptocurrencies.

Reuters states that mainland investors can buy Bitcoin and other cryptocurrencies over-the-counter through centralised platforms like OKEx and Binance. Taking advantage of Hong Kong’s supportive attitude towards digital assets, some investors are transferring their $50,000 yearly forex purchase quotas into bitcoin accounts there.

According to crypto analytics platform Chainalysis, China’s peer-to-peer trading volume jumped from 144th in 2022 to 13th in 2023, reflecting a boom in activity in the Chinese crypto sector.

Even though trading cryptocurrencies is illegal in China, major companies like Huawei and Tencent are nevertheless making waves in the Web3 industry by lending their processing power to web3 entrepreneurs.

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