In a significant departure from its previous stance on cryptocurrencies, China has taken bold steps to position itself as a global leader in Web3 and blockchain technology.
The Chinese Ministry of Industry and Information Technology has recently unveiled a comprehensive plan to foster the development of Web3 and blockchain technologies within the country. This strategic shift signifies China’s ambition to harness the potential of decentralized technologies while maintaining regulatory control.
Building a robust policy framework
One core objective of the Ministry’s document is strengthening the policy framework surrounding Web3 technologies. The goal is to facilitate the harmonized growth of the Web3 industry while ensuring that adequate regulatory oversight is in place.
This approach is a clear departure from the outright bans imposed on cryptocurrency-related activities in China, demonstrating the government’s willingness to embrace emerging technologies with a balanced approach.
The Chinese government has recognized the importance of advancing research in blockchain technology and other components of Web3. This includes nurturing domestic technologies and keeping pace with global innovations in the field.
By doing so, China aims to stay at the forefront of Web3 development, fostering a conducive environment for innovation and entrepreneurship.
Shaping global standards
Acknowledging the international nature of Web3 technologies, China’s plan emphasizes active participation in creating global standards for the industry.
This involves influencing and adapting to international norms in Web3 technologies, with the ultimate goal of establishing China’s prominent role in the global discourse on decentralized technologies.
The Ministry’s initiative envisions the integration of Web3 technologies across various industries, including healthcare, education, and tourism. This signals a broad spectrum of applications for these technologies in China’s digital infrastructure.
By incorporating Web3 into diverse sectors, China aims to enhance efficiency, transparency, and innovation, ultimately contributing to technological advancement.
A larger embrace of decentralized tech
The Ministry of Industry and Information Technology’s focus on Web3 is part of China’s broader embrace of decentralized technologies. In September, the Ministry unveiled a three-year action plan dedicated to the Metaverse.
This plan aims to incubate three to five metaverse startups that will achieve global significance by 2025, further highlighting China’s commitment to emerging technologies beyond Web3.
China’s aggressive push into Web3 and blockchain technology starkly contrasts its strict stance on cryptocurrencies.
The country imposed a comprehensive ban on all cryptocurrency-related activities, including trading, effectively curbing the operation of crypto exchanges within its borders. This divergence in policy reflects the Chinese government’s nuanced approach to different aspects of the digital economy.
