China is setting up a research center for further innovation in the field of blockchain
Despite China’s belligerent stance against cryptocurrency trading, the country has been active in blockchain innovation and even prides itself as a blockchain-backed country. China claimed 84% of all registered blockchain applications worldwide in September 2022.
Although China’s claim in the field of blockchain is not far from expected, the approval rate of programs related to this field in the mentioned country is remarkably low. Currently, only 19% of all applications registered in this country have received the necessary approval.
China CBDC development progress update
Blockchain technology and the CBDC project have become the trademark of the Chinese government. In line with the development process of the said project, the country’s central bank has provided billions of dollars of electronic yuan (e-CNY) across the country, which aims to promote the adoption of CBDC. According to a new report, China’s central bank has launched about 200 e-CNY-related activities across the country.
The purpose of these activities was to promote the use of digital yuan. During this process, many Chinese cities spent 180 million yuan ($26.5 million) in digital in subsidy and voucher programs. Global Times, a Chinese news media based in England, announced that some cities such as Shenzhen have allocated more than 14.7 million digital yuan as subsidies to various industries.
China has made several efforts to further embrace the digital yuan, including setting targets for various cities to increase the use of CBDCs. Another report notes that the city of Hangzhou issued CNY 80 yuan e-vouchers to each of its citizens on January 16.
In addition, senior officials of the ruling party in Suzhou city set a key performance indicator for the end of 2023 on February 1. City officials expect electronic CNY transactions to reach two trillion yuan ($300 billion) by the end of this year.
Of course, we should mention that the total e-CNY transactions in October 2022, that is, two years after the launch of the CBDC, barely exceeded the 100 billion yuan ($14 billion) mark.
The e-CNY wallet app offers the ability to send red gift packages called Hongbao, the main purpose of which is to attract more users. In early January, the app received a new update that allowed users to make wireless payments using their Android phones.
China has become one of the world’s most important technology centers for many years, and with the establishment of the Blockchain Innovation Research Center, it can experience more significant progress and more success.