In a surprising turn of events, the Chinese government appears to be shifting its perspective on cryptocurrencies and is now eager to explore the possibilities offered by related sectors. According to local news outlet The Paper, the government has released a white paper aimed at fostering innovation and development within the Web3 industry.
Titled “Web3 Innovation and Development White Paper (2023),” the document was unveiled by the Beijing Municipal Science and Technology Commission (Zhongguancun Chaoyang Park). It emphasizes the inevitability of web3 technology as a future trend in the Internet industry.
The white paper focuses on key research areas such as artificial intelligence (AI), XR interactive terminals, and content production tools. It also acknowledges the rapid growth of emerging applications like digital populations and collections.
While recognizing the challenges faced in the development of the Internet 3.0 industry in Beijing, including technical capabilities, talent support, and legal norms, the white paper proposes policy changes to address these issues.
Yang Hongfu, the director of the Zhongguancun Chaoyang Park management committee, revealed that the Chaoyang district plans to allocate a minimum of 100 million yuan ($14 million) annually until 2025 to support this initiative. Zhongguancun, known as China’s Silicon Valley, will play a crucial role in driving this ambitious endeavor.
The release of the white paper has caught attention, given China’s history with the cryptocurrency sector. Changpeng Zhao, the CEO of Binance, expressed his interest in a tweet, highlighting the interesting timing of the white paper’s release alongside the upcoming implementation of crypto regulations in Hong Kong.
Recent developments suggest a potential shift in China’s stance on cryptocurrencies, fueling speculation about a policy change after years of bans. Zhao noted that the state broadcaster, China Central Television (CCTV), aired a segment featuring the Bitcoin logo, which is seen as a significant event. In the past, such coverage has been associated with increased market activity and price surges.
The CCTV segment showcased a Bitcoin ATM in Hong Kong, featuring a prominent blue Bitcoin logo and the option to “Buy Bitcoins,” further fueling speculation about China’s evolving perspective on cryptocurrencies.
This news is significant, considering the profound impact it carries. In 2021, China implemented a major crackdown on digital assets, particularly mining, which had a substantial impact on the crypto market. However, the market eventually recovered, with Bitcoin reaching an all-time high in late 2021.
Despite other factors affecting Bitcoin’s value, such as macroeconomic elements, the cryptocurrency continues to trade below $27,000 and is currently valued at $26,700.
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