China outlines blockchain strategy, Hong Kong includes CBDC in ‘Fintech 2025’ plan | Industry Analysis| OKEx Academy

China continues to ramp up its blockchain strategy as Hong Kong prepares for an e-HKD — China Market Watch

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Blockchain development is at the top of China’s agenda this week after the Ministry of Industry and Information Technology proposed a blockchain strategy with the office of the Central Cyberspace Affairs Commission. At the same time, the Copyright Society of China — a public institution that falls under the National Copyright Administration of China — launched the China Copyright Chain for digital copyright protection.

In Hong Kong, meanwhile, a central bank digital currency is included in the “Fintech 2025” plan unveiled by the Hong Kong Monetary Authority.

Here’s everything you may have missed regarding these stories, and more, in this week’s edition of China Market Watch from OKEx Insights.

China pushes blockchain adoption in five areas

The Ministry of Industry and Information Technology and the office of the Central Cyberspace Affairs Commission issued a proposal to foster the country’s blockchain development.

As stated in the proposal, China aims to facilitate blockchain adoption in five areas:

  1. Empower the real economy through blockchain technology. 
  2. Encourage public-service innovation.
  3. Foster industry standardization and network security.
  4. Facilitate the growth of blockchain enterprises, products and innovation zones.
  5. Integrate blockchain technology with the industrial internet-of-things, big data, cloud computing and artificial intelligence.

Key takeaways

  • The blockchain proposal is in line with President Xi Jinping’s  “Socialism with Chinese Characteristics for a New Era.”
  • Blockchain technology helps to empower the real economy through its use cases in supply-chain management, product authentication, data sharing and more.
  • The MIIT publication also reveals China’s ambition to cultivate future blockchain unicorns.

China Copyright Chain to protect digital copyrights

The Copyright Society of China announced the launch of China Copyright Chain, which offers the following functions to protect digital copyrights:

  1. Document proofs of digital assets.
  2. Monitor copyright infringement activities.
  3. Issue notices for the removal of pirated products.
  4. Collect online evidence.
  5. Help courts settle copyright-related disputes.

Key takeaways

  • The immutability, source-tracing ability and distributed consensus of blockchain technology enhance the efficiency of digital copyright protection — at significantly reduced costs.
  • The China Copyright Chain further supports the Supreme People’s Court’s initiative on the use of blockchain technology in legal proceedings.

Hong Kong includes CBDC in Fintech strategy

The Hong Kong Monetary Authority unveiled its “Fintech 2025” strategy and put central bank digital currencies officially on the agenda. The central bank will increase its research efforts to make sure it is ready to issue wholesale and retail CBDCs.

Key takeaways

  • The HKMA is continuing its partnership with the Bank for International Settlements to research retail CBDCs. Both parties will begin a case study for the e-HKD while examining its use cases, benefits and risks.
  • The HKMA is also continuing its wholesale CBDC effort, “Multiple Central Bank Digital Currency (m-CBDC) Bridge” — a CBDC initiative including the Bank of Thailand, the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People’s Bank of China.
  • Furthermore, the Hong Kong central bank continues to support the technical testing of China’s digital currency, DCEP, in cross-border payments.

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