China has announced that it is moving to pay more attention to the development of the cryptocurrency industry in the future.
This latest development comes despite a 2021 ban on trading in Bitcoin and other digital coins that crashed the market in China.
In a document released by China’s ministry of industry and information technology, the government will forge ahead with the development and rolling out of non-fungible tokens (NFTs), and other decentralized apps based on the Bitcoin blockchain.
According to the statement, the Chinese government will “strengthen collaborative interarction with the relevant departments to promote web 3.0”, quality industrial developments, and innovations in the tech industry.
Web3 is a proposed concept that describes a potential blockchain-based decentralized internet. If it comes to be, the new internet could potentially rival, or even replace entirely, the current web 2.0 that is a staple of tech giants such as Google and Meta, Facebook’s parent company.
China will also dive into the “metaverse”, NFTs, and also take a keen interest in what the statement described as the application of technologies such as decentralized identity management.
China is using blockchain tech for security and intelligence purposes
Despite banning trade in Bitcoin and other cryptos in 2021, the government in Beijing has continued to pump billions of dollars in blockchain technology to boost its surveillance and identification abilities.
The country’s digital Yuan was inspired by Bitcoin and the crypto industry.
The country is famous for its “Skynet” surveillance system. Government officials insist that the system is meant to primarily protect the public. And while many citizens feel safe because of it, the system is also used to identify, track, and even apprehend perceived dissidents and opponents of the ruling elite.
China’s move could have been catalyzed by surging prices
China’s growing interest in Bitcoin’s blockchain comes as the combined prices of several cryptos continue to rise.
Last week, the crypto market cap mirrored its peak in December. It reached a mouth-watering $1.65 trillion.
Rumors have been swirling that Wall Street could finally dip its toe into the crypto market, partly causing the upsurge in the prices.
Caitling Long, the CEO of Custodia, a US crypto bank has also been fanning rumors that another country could soon join El Salvador in absorbing Bitcoin as a legal tender.
There have been unproven claims that the Qatar sovereign wealth fund could be looking to acquire $500 billion worth of Bitcoin, further causing upheavals in the market.
