The Chinese government has announced a groundbreaking initiative led by Conflux Network to create an “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative.” The platform will support cross-border transactions and cooperation projects along the Belt and Road Initiative, with participation from prestigious institutions such as the China Academy of Information and Communications Technology and Shanghai Jiao Tong University. The project aims to address the unique characteristics of transnational cooperation scenarios and develop an advanced blockchain primary platform to facilitate collaborative supervision across multiple countries and subjects. Conflux Network played a crucial role in beta-testing the Hong Kong Dollar-backed stablecoin, AxHKD, demonstrating its position as the only regulatory-compliant public blockchain in China.
Despite China’s strict stance against cryptocurrencies, including past crackdowns on the industry, the government’s blockchain initiative showcases the country’s interest in technology while maintaining hostility towards cryptocurrencies. Chinese investors are increasingly turning to the crypto market as a safer alternative amid economic downturns and a sluggish stock market, leading to a thriving underground crypto industry. Mainland investors are finding innovative ways to access cryptocurrencies like Bitcoin, including using bank cards from rural banks and overseas platforms for trading. Some investors are leveraging their forex purchase quotas to move funds into crypto accounts in Hong Kong, capitalizing on the territory’s favorable stance towards digital assets.
With the surge in activity in the Chinese crypto market, the country has witnessed a significant increase in its global ranking in peer-to-peer trade volume, jumping from 144th place in 2022 to 13th place in 2023. Chinese tech giants like Tencent and Huawei are also making inroads in the Web3 space, leveraging their computing resources to support web3 startups despite the ban on cryptocurrency trading. These developments indicate a growing interest and investment in blockchain technology in China, despite the government’s restrictive policies towards cryptocurrencies.
The initiative led by Conflux Network aims to create a public blockchain infrastructure platform that can support cross-border cooperation projects under the Belt and Road Initiative. The project focuses on developing applications for economic, trade, and cultural cooperation, with the goal of demonstrating the potential of blockchain technology in facilitating international collaborations. By leveraging an advanced blockchain platform, the initiative seeks to promote transparent and secure cross-border transactions and provide a foundation for future projects in various domains.
The project launch meeting for the “Ultra-large-scale Blockchain Basic Platform for the Belt and Road” brought together expert leaders from government agencies, research institutes, and project participants to discuss the implementation plan and objectives of the initiative. Notable institutions such as the Shanghai Maritime University and Fudan University were actively involved in the project, highlighting the broad support and collaboration from various stakeholders. The successful beta-testing of the HKD-backed stablecoin on Conflux Network further demonstrates the platform’s capabilities and regulatory compliance, positioning it as a key player in China’s blockchain ecosystem. With the government’s endorsement and support for blockchain technology initiatives, Conflux Network and other projects are paving the way for innovative solutions in cross-border cooperation and digital asset management.
