Despite China's tumultuous history with CRYPTOCURRENCIESthe government now seems willing to tap into the potential of segments related to the sector.
In particular, the government has presented a white paper that aims to encourage innovation and development within the web3 industry, a local media Paper reported May 27
The Beijing Municipal Science and Technology Commission (Zhongguancun Chaoyang Park) released the document called "Web3 Innovation and Development White Paper (2023)", emphasizing the the technology status as an "unavoidable trend for the future development of the Internet industry".
The white paper focuses on fundamental research areas in the web3 industry, including artificial intelligence (AI), XR interactive terminals and content production tools. It recognizes the rapid growth of emerging applications such as digital populations and collections.
However, he recognized the challenges of development and the need for policy changes.
โThe white paper proposes that the current development of the Internet 3.0 industry in Beijing still faces challenges in terms of technical support capabilities and talent, integrity of the industrial chain, and legal standards based on the analysis and judgment of the state and trends. Internet 3.0. development," the document says.
Yang Hongfu, director of the Zhongguancun Chaoyang Park management committee, revealed that the city's Chaoyang district plans to allocate a minimum of 100 million yuan ($14 million) annually until 2025. In particular, Zhongguancun, often recognized as the Silicon Valley of China, will be crucial in driving this ambitious effort forward.
Implication of China's new crypto support
The publication of the white paper has provoked reactions, given China's past relationship with the cryptocurrency industry. Binance CEO Changpeng Zhao expressed his intrigue in a cheep on May 27, highlighting the interesting timing of the white paper release along with the upcoming crypto implementation regulations In Hongkong.
Recent events indicate a potential shift in China's stance on cryptocurrencies, raising speculation of a change in policy after years of bans. In particular, China Central Television (CCTV), the state broadcaster, airy a segment featuring Bitcoin (BTC) logo, a significant event, according to Zhao. He suggested that similar hedging has historically been associated with increased market activity and price surges.
The CCTV segment featured a view of a Bitcoin ATM located in Hong Kong. The presence of a striking blue Bitcoin logo and the option to "Buy Bitcoins" sparked even more speculation about China's changing outlook on cryptocurrencies.
This news is striking because of the profound impact it entails. Notably, in 2021, China implemented its most significant crackdown on digital assets banning mining, which reverberated as one of the major impacts on the economy. crypto market in recent years. However, the market rallied and Bitcoin reached an all-time high in late 2021.
Meanwhile, Bitcoin continues to be weighed down by other factors such as macroeconomic elements. At press time, the maid cryptocurrency was still trading below $27,000, valued at $26,700.
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