January 01, 2025
By Anjali Kochhar
With an emphasis on modernising its financial system, growing its digital infrastructure, and improving its capacity for international trade, China has stepped up its efforts to establish itself as a world leader in blockchain technology. These developments further solidify China’s position as a major participant in the nascent global digital economy and represent the nation’s long-term plan to integrate blockchain into its technological and economic framework.
A key milestone in China’s blockchain journey is the continued growth and expansion of the Central Bank Digital Currency (CBDC), the digital yuan (e-CNY). With a surge in transactions, e-CNY is increasingly being used for domestic and cross-border payments, making it a direct competitor to the U.S. dollar in global trade. The digital yuan offers improved financial transparency, reduced transaction costs, and greater accessibility, particularly benefiting underserved populations. China’s development of the digital yuan is a major step toward establishing a self-reliant financial ecosystem and reducing dependence on foreign currencies.
In the realm of public services, blockchain is being integrated through systems like the China Real-Name Decentralised Identifier System (China RealDID). This system allows individuals to verify their identities online using decentralised identifiers (DIDs), ensuring privacy while complying with China’s strict real-name registration policies. RealDID has made it easier for citizens to access government services securely, and its implementation is being expanded to enable cross-border Know Your Customer (KYC) processes. This initiative is a clear example of how blockchain can enhance security and streamline public service delivery.
Blockchain technology is also playing an essential role in China’s green economy initiatives. By incorporating blockchain into green GDP accounting, the country aims to track carbon emissions and environmental data in real-time, ensuring transparency and accountability in environmental performance. This initiative helps China improve the accuracy of its green GDP measurements and fosters a sustainable economic model. Blockchain-based solutions are also being employed in environmental monitoring, providing a secure and transparent way to track the nation’s progress toward sustainability goals.
Nasi Wang, Yunhao Zhao, Jun Li, and Guanfeng Cai, the researchers behind the study on this , stated, “By integrating blockchain and artificial neural networks into China’s green GDP accounting framework, we are enhancing transparency, improving data accuracy, and enabling better decision-making. This will not only align economic growth with sustainability goals but also empower China to lead in environmentally responsible development.”
Also Vikram Subburaj, CEO of Giottus Crypto Platform, highlighted that China’s blockchain strategy benefits key industries like finance, supply chain, healthcare, and governance. He emphasised blockchain’s alignment with China’s goals of technological self-reliance and digital sovereignty, noting its role in enhancing scalability, cost-efficiency, and regulatory compliance. Subburaj sees blockchain as a transformative force in both traditional industries and governance.
Blockchain technology is being leveraged in China’s Belt and Road Initiative (BRI) to enhance transparency and efficiency in cross-border trade. With blockchain, the movement of goods and transactions are recorded immutably, reducing fraud and improving the reliability of trade processes. Blockchain’s integration into the BRI allows for smoother and more efficient trade routes, furthering China’s goal of improving global trade infrastructure. By adopting blockchain for cross-border payments and supply chain management, China is creating a more trustworthy and efficient trade environment.
The role of blockchain in China’s digital transformation goes beyond financial and public sectors. Industries such as supply chain management, healthcare, and logistics are increasingly adopting blockchain technology to improve operational efficiencies. Blockchain is enabling businesses to reduce costs, enhance data security, and streamline processes. This widespread adoption across various industries showcases China’s commitment to building a comprehensive digital economy.
At the same time, regulatory measures are guiding the growth of blockchain in China, ensuring that digital assets are integrated in a way that maintains financial stability. The People’s Bank of China (PBOC) continues to regulate the use of digital yuan and blockchain technology, balancing innovation with security. While China has adopted a cautious approach to cryptocurrencies, it remains focused on advancing blockchain technology within a controlled environment. This regulatory framework is critical to fostering trust in blockchain-based solutions and ensuring their smooth integration into China’s financial and economic systems.
China’s blockchain initiatives are shaping the future of its digital economy. The growth of the digital yuan, the implementation of blockchain in public services, environmental sustainability efforts, and the Belt and Road Initiative are all driving China’s efforts to establish itself as a global leader in blockchain technology. As these advancements continue, China is positioning itself at the forefront of the digital revolution, setting the stage for a new era of blockchain-driven global economic growth.
About the author
Anjali Kochhar covers cryptocurrency and blockchain stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
