NPC deputies advise blockchain technology acceleration

Deputies to the National People’s Congress (NPC) put forward suggestion to promote the use of blockchain technology, from experimental use of the cryptocurrency in the Yangtze River Delta to upgrading the country’s traditional manufacturing industry.

China included blockchain as part the country’s technology strategy in its new infrastructure initiative with the total investment of 10 trillion yuan ($1.4 trillion) over six years to 2025.

Cui Yu, a deputy to the NPC and president of the Shanghai-based City Commercial Banks Clearing Co, recommended a pilot program to promote a payment and settlement integrated system with a cryptocurrency in the Yangtze River Delta, which includes Shanghai and East

China’s Jiangsu, Zhejiang and Anhui provinces.

The region, a major growth engine of China’s economy, should grasp the historic opportunity, adopt blockchain technology and apply it vigorously, Cui said.

Cheng Jing, a member of the Chinese People’s Political Consultative Conference (CPPCC), proposed that enterprises should connect production supervision, management, procurement data and sales data with blockchain technology, boosting China’s industrial strength.

Directional appropriation and inter-regional payments via a blockchain-based cryptocurrency can help reduce operational costs in the fields of finance, taxation and customs, Cao Yin, an industry insider, said. “It’s a time of fiscal stringency. Adopting cryptocurrencies could better support Chinese small- and medium-sized enterprises because the costs for banks will be reduced,” Cao said.

The establishment of a special government-led fund to develop the blockchain industry was proposed by an NPC deputy, Tan Jieqing, who said the technology could be instrumental to push China toward smarter governance.

The leading advantage of China’s blockchain development is reflected in application areas, but it remains weak in terms of fundamental research, key technology and core patents, said Kong Falong, an NPC deputy.

“What concerns the industry most is the US monopoly or control of the pricing power of the digital assets. Through its global financial hegemony, the US may speculate in digital assets and rake in massive benefits at the cost of other economies,” Cao said.