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China releases white paper for Web3 development; Bullish sign for crypto?

China releases white paper for Web3 development; Bullish sign for crypto?

Despite China’s tumultuous history with cryptocurrencies, the government now seems keen to embrace the potential of the sector’s related segments. 

In particular, the government has unveiled a white paper intending to foster innovation and development within the web3 industry, local news outlet The Paper reported on May 27.

The Beijing Municipal Science & Technology Commission (Zhongguancun Chaoyang Park) unveiled the paper dubbed “Web3 Innovation and Development White Paper (2023),” emphasizing the technology’s status as an “inevitable trend for future Internet industry development.” 

The white paper focuses on fundamental research areas in the web3 industry, including artificial intelligence (AI), XR interactive terminals, and content production tools. It acknowledges the rapid growth of emerging applications like digital populations and collections.

However, it recognized the development challenges and the need for policy changes. 

“The white paper proposes that the current development of the Internet 3.0 industry in Beijing still faces challenges in terms of technical and talent support capabilities, industrial chain integrity, and legal norms based on the analysis and judgment of the status and trends of the Internet 3.0 development,” the paper reads.

Yang Hongfu, director of the Zhongguancun Chaoyang Park management committee, disclosed that the city’s Chaoyang district plans to allocate a minimum of 100 million yuan ($14 million) annually until 2025. Notably, Zhongguancun, often recognized as China’s Silicon Valley, will be crucial in driving this ambitious endeavor.

Implication of China new crypto stand

The release of the white paper has sparked reactions, given China’s past relationship with the cryptocurrency sector. Binance CEO Changpeng Zhao expressed his intrigue in a tweet on May 27, highlighting the interesting timing of the white paper’s release in conjunction with the forthcoming implementation of crypto regulations in Hong Kong.

Recent developments indicate a potential shift in China’s stance on cryptocurrencies, raising speculation about a change in policy after years of bans. Notably, China Central Television (CCTV), the state broadcaster, aired a segment featuring the Bitcoin (BTC) logo, a significant event, according to Zhao. He suggested that, historically, similar coverage has been associated with heightened market activity and price surges.

The CCTV segment featured a sight of a Bitcoin ATM located in Hong Kong. The presence of a conspicuous blue Bitcoin logo and the option to “Buy Bitcoins” further sparked speculation regarding China’s shifting perspective on cryptocurrencies.

This news is noteworthy due to the profound impact it carries. Notably, in 2021, China implemented its most significant crackdown on digital assets banning mining, which reverberated as one of the major shocks to the crypto market in recent years. However, the market recovered, with Bitcoin hitting an all-time high in late 2021. 

In the meantime, Bitcoin continues to be weighed down by other othe factors like macroeconomic elements. By press time, the maid crypto was still trading below $27,000, valued at $26,700. 

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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