China to Create Blockchain Research Institute

Blockchain, FinTech, Group, Innovation, Regulation | September 6, 2017 By:

China’s Ministry of Industry and Information Technology will be creating a blockchain research institute in Qingdao.

The Ministry of Industry and Information Technology, which is directly under the China Electronic Information Industry Development Research Institute, collaborated with Beijing Tiande Technology to accelerate the pace of technological research by establishing a research institute.

Blockchain laboratory director Cai Weide, the project’s chief scientist, claims that China’s blockchain industry has the potential to walk in the forefront of the world and establish itself as a global leader.

Weide has outlined a three-step policy approach for China to become a global leader in blockchain technology:

1) The creation of a Chinese blockchain industrial sandbox with industry associations under the guidance of the enterprise self-test and assessment work. The umbrella sandbox would work closely with government regulatory support and a regulatory sandbox developed by industry to a certain extent, up till the point where the regulatory model has matured. The industrial sandbox will come first, and will work alongside regulatory authorities, to build and promote an umbrella and regulatory sandbox.

2) The Qingdao blockchain research center will promote China’s blockchain sandbox program through collaboration between the government, financial institutions, universities and research institutes, industry funds and technology companies.

3) Building an open-sourced platform for blockchain testing and monitoring within the sandbox framework. The platform has built the first prototype to support blockchain automation in China, supporting applications such as financial regulation, food and medicine tracking, product logistics tracking, payments clearing and settlement, etc.

Earlier this year, the Ministry of Industry and Information Technology teamed with Chinese e-commerce giant Alibaba Group, multinational telecom company ZTE, and China Unicom to create a blockchain framework for Internet of Things (IoT). In addition, the Chinese government last year released a white paper focused on blockchain technology in order to actively guide the development of the technology and its application in the country.