Two years ago, in September 2023, China banned transaction and payment activities based on cryptocurrencies. All the firms working on the digital assets were blocked, leaving Web 3.0 companies blocked for Chinese users. But now, Beijing, China’s capital is supposed to make Web 3.0 or Blockchain inevitable.
Let’s take a look at the overall scenario to explore why Beijing supports blockchain technology.
Why did China ban Bitcoin?
China banned all forms of cryptocurrencies in 2021 concerning the mining effect on the ecosystem and individuals using digital assets for money laundering. After maintaining a hostile partnership with the crypto industry since 2013, the country completely banned digital assets.
The People’s Bank of China (PBoC) issued a notice when Bitcoin boomed in terms of price, stating to ban BTC and other cryptocurrencies in the country. Following the laws and legislations, China completely banned crypto trading and mining in the year 2021. The State Council called for restrictions on crypto mining and trading which simply enhanced problems for the Chinese crypto industry.
According to PBoC, cryptocurrency encourages financial crimes in China and puts the financial system of China at risk. Another possible reason behind the crypto ban is a try to combat capital flight from China. Now, Beijing is ready to take off Web 3.0 technology, making it inevitable.
Beijing to Support Blockchain Technology
On June 2, 2023, an official released the ‘Beijing Internet 3.0 Innovation Development White Paper.’ The White Paper simply represents the interest and action taken by Beijing to lead the nation in several landscapes related to Web 3.0. China’s capital is all set to work on the statement and apply a range of measures. One of the key motives behind the action is to bolster the coordination between government authorities and its municipality along with development throughout the city. The Paper also spots the technological requirement of Beijing to boost its organizational support and policy application to speed up the research and development sector. Another motive is to offer a risk-free and innovative development environment to individuals.
To be clear, China has not reversed the 2021 ban, and the decision of Beijing to support Web 3.0 may stir the Chinese market soon. While China is not supporting Cryptocurrencies for trading purposes, the action of Beijing and dozens of other cities in China shows the support and interest of China towards Web 3.0 as critical infrastructure for the future. Web 3.0 has the potential to be transformative and will help China in competing with other countries supporting and using this technological advancement.
Conclusion
China’s capital, Beijing supports Blockchain technology or Web 3.0, making it inevitable. China once banned all forms of cryptocurrencies due to their adverse impact on the environment and individuals using digital assets. In the White Paper release, it is clear that Beijing is to support Blockchain technology and consider Web 3.0 as critical infrastructure for the future.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/08/27/chinas-capital-beijing-in-making-blockchain-inevitable/