China's top leadership has called for a national blockchain network as one of 19 measures in a new economic blueprint announced on October 9. The policy, issued by the Communist Party's Central Committee and the State Council, does not mention Bitcoin or any other cryptocurrency.
The blockchain initiative sits within a broader section on merging traditional industry with digital technology. It also includes plans for a nationwide computing grid and the "East Data, West Computing" program, which directs data from eastern cities to western data centers.
Existing Infrastructure and Future Direction
China already operates a state-backed system called the Blockchain-based Service Network (BSN), launched in April 2020. According to Stanford's DigiChina project, this system does not allow independent cryptocurrencies such as Bitcoin. The new policy document does not clarify whether the national network will build on this existing infrastructure.
Implementation work has been assigned to the Central Financial and Economic Affairs Commission and the National Development and Reform Commission. Their forthcoming rules will determine what the network carries and whether cryptocurrency remains excluded.
Crypto Trading Remains Banned
Cryptocurrency trading has remained illegal in mainland China. In February, the People's Bank of China and seven other agencies reiterated this ban. Beijing's digital currency efforts are focused on the digital yuan, China's state-issued digital currency. In August, the PBOC outlined a five-year plan to steadily develop the digital yuan.
