THE Chinese State Council which is the central administrative branch of the government has earlier today given the highest-level order to local authorities, requesting them to speed up their blockchain technology development.
This latest development points to the fact that the Chinese government is looking to adopt the blockchain technology in some of its operations faster than even anticipated. The State Council gave the first order earlier this month (May 4). The order which was given to both provincial and municipal governments looked into various strategies that are needed to continue the reformation of the Guangdong Pilot Free-Trade Zone.
One of the areas listed according to the document is to fast-track the development of financial technologies in the country, with one of them the “development and implementation of blockchain applications under existing regulatory frameworks.”
The Guangdong Free-Trade Zone which was approved by the State Council four years ago is a designated area within the Guangdong province that encompasses both Hong Kong and Macau to create a more internationalized free market.
The order by the council doesn’t contain many details on how the blockchain technology would be used in this free-trade zone or to what extent it would be used. It is a very important milestone however as it is the first time that the Chinese central government has prioritized the use of blockchain in a top-level official document.
The data revealed by the Ministry of Information and Technology earlier this week revealed that the Guangdong province has 71 blockchain startups which make up 16% of the blockchain industry participants in the country.
Even though this is the first time that the central government of China has prioritized blockchain, this isn’t the first time that it has been discussed. Back in 2016, the State Council looked into the concept of blockchain as part of an information reformation strategy as part of China’s 13th five-year economic development plan that span from 2016 to 2020.
The official order mentioned blockchain as one of the emerging technologies that should be taken seriously as part of the Chinese economic reform.