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The Chinese Congress proposes the Blockchain Development Fund

May 25, 2020

The National People’s Congress, the Chinese Parliament and the Chinese People’s Political Consultative Conference, the most powerful political advisory body in the country, have recently started their annual meetingss. These are commonly known as “two sessions” or “Lianghui” meetings. These meetings have taken place since May 22nd.

The National People’s Congress (NPC) is the main legislative body in China. Almost 3,000 delegates from across the country meet once a year to make suggestions during the meetings.. According to the Beijing News report of May 23 Jieqing Tan, a member of the NPC, proposed setting up a special fund for the development of the blockchain industry. If accepted, this fund would be managed by the government.

The aim of the fund is to support the development and growth of a number of promising blockchain companies and to promote innovations in the field of blockchain technology and cultivate a number of unicorn companies in the blockchain space, says Tan.

Intelligent government through blockchain

The Chinese Congress proposes the Blockchain Development FundThe Chinese Congress proposes the Blockchain Development Fund

By supporting the development of the blockchain industry, Tan believes this will “modernize” the country’s governance system.

Blockchain technology will not only be a great tool to move China to smart governance and a highly trustworthy society, but also can help China gain a global advantage in the future development of the technologyAccording to Tan, he believes that China’s leadership in technological innovation can better protect its sovereignty and national security.

Tan suggested defining a clear national plan for the development of the blockchain industry. He explained that:

“From the lower technology standard, the development of applications for medium-sized industries to the design of higher-level systems, national blockchain technology, industry and the regulatory three-dimensional strategic planning system must be well coordinated.”

Current challenges and initiatives

The new economic potential and new employment opportunities that result from blockchain technology are enormous. However, Tan noted that the number of constrained blockchain companies, their scalability, and lack of talent and information were currently the main issues that prevented the blockchain ecosystem from developing a well-established ecosystem.

As Cointelegraph previously reported, The Chinese central bank secured $ 4.7 million for its blockchain trading platform over the next three years.. The Beijing tax office announced its pilot billing application for blockchain for a more environmentally friendly, convenient and transparent administration in the future.