Key Takeaways
- The “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative” seeks to provide a public blockchain for cross-border applications.
- According to the Chinese government’s policy, crypto will not be available on blockchain.
China has unveiled a new project in collaboration with Conflux Network, showing their strong commitment to blockchain technology and its potential within the Belt and Road Initiative. Despite this, it’s worth noting that Chinese regulations still don’t allow financial institutions to get involved with cryptocurrencies.
This initiative aims to create a robust public blockchain platform, focusing on cross-border collaboration while adhering to Chinese policies that steer clear of cryptocurrencies. Conflux Network is leading this effort, highlighting their pivotal role in fostering cooperation along the Belt and Road Initiative.
Conflux Network confirmed its involvement through social media, emphasizing its partnership with the Chinese government. Meanwhile, Shanghai is working on its urban blockchain infrastructure project, slated for completion by 2025, showing the country’s broader push to integrate blockchain across various sectors.
Besides this government-backed project, Conflux Network has been busy advancing blockchain tech on its own. For example, they recently began beta testing for the AxHKD stablecoin, signaling their dedication to exploring new applications in the blockchain space.
Earlier this year, Conflux Network introduced an Ethereum Virtual Machine (EVM) compatible layer 2 solution, allowing for the deployment of smart contracts. This move is set to enhance the platform’s versatility and compatibility with existing Ethereum-based applications. They’re also looking into integrating a proof-of-stake (PoS) protocol, with plans to launch a testnet in early 2024 and a mainnet in May.
Conflux Network, nurtured with support from the Chinese government, may be officially registered in Singapore, but it maintains strong ties with China’s tech elite.
The latest development comes amid China taking a hostile chance towards cryptocurrencies. China had started tightening its grip on the crypto industry since at least 2017 when the government ordered Chinese Bitcoin exchanges to shut down.
In 2021, China banned crypto trading and mining citing the role of crypto in facilitating financial crime as well as posing a growing risk to China’s financial system owing to their highly speculative nature.
