- China’s regulatory bodies promote blockchain for improved financial services in manufacturing.
- Supports digital infrastructure and “one-stop” financial services.
- No impact on global cryptocurrencies; focus on enterprise platforms.
The People’s Bank of China and the Ministry of Industry and Information Technology issued guidance promoting blockchain, AI, and digital infrastructure in financial services for the manufacturing sector.
This directive emphasizes improved financial access for small enterprises, fostering digital transformation, but importantly, excludes direct impacts on cryptocurrencies like Ether and Bitcoin.
China Strategizes Blockchain for SME Finance Enhancement
The People’s Bank of China, along with the Ministry of Industry and Information Technology and other departments, has published the Guiding Opinions on Financial Support for New Industrialization. This policy encourages the use of blockchain, big data, and artificial intelligence to streamline financial services for manufacturers, particularly aiding small and medium-sized enterprises.
The focus is on building digital infrastructure like 5G and the industrial internet to broaden financing channels. Banks are encouraged to develop digital financial platforms promoting “one-stop” financial services and facilitating easier access to funding for small businesses.
Responses from the industry are cautiously optimistic, praising the potential efficiency gains while monitoring the clear separation from global cryptocurrencies. Zhulin Shen, National Data Administration, notes a projected annual investment of 54.5 billion USD.
“The project is expected to attract approximately 400 billion yuan ($54.5 billion) in annual investments over the next five years.” – Zhulin Shen, Deputy Director, National Data Administration
Blockchain Adoption in China: Historical Context and Expert Views
Did you know? China’s blockchain strategy, initiated in 2019 by President Xi’s endorsement, significantly boosted domestic technology adoption but maintained a separate stance from decentralized cryptocurrencies like Bitcoin and Ethereum.
Ethereum (ETH) currently trades at $3,971.01, with a market cap of $479.34 billion USD, according to CoinMarketCap. The 24-hour trading volume stands at $43.73 billion USD, marking a 26.39% change. ETH’s price rose by 61.62% over 90 days, showing robust growth.
Experts at Coincu highlight that China’s policy could catalyze technological innovation but will not directly affect decentralized crypto assets like Ethereum or Bitcoin. The strategic focus remains on enterprise-driven blockchain, ensuring regulatory compliance and enhanced industrial efficiency.
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Source: https://coincu.com/blockchain/china-blockchain-finance-initiative/