Conflux Network event in Shanghai explores the use of blockchain in international trade and exchange

Although China is well known for its aversion to speculative digital asset trading, it continues to explore the potential benefits of blockchain technology. This week, representatives of the Conflux Network project announced that they participated in a demonstration conference of the Belt and Road Ultra-Large Blockchain Basic Platform held in Shanghai.

Also present at the March 30 event were representatives from China Academy of Information and Communication Technology, Shanghai Jiao Tong University, Fudan University, and Shanghai Maritime University. According to Conflux Network
The presentation was also attended by representatives from the Industrial Development Promotion Center of the Ministry of Industry and Information Technology of China and the Shanghai Science and Technology Commission.

Founded in November 2020, Conflux Network describes itself as a “barrier-free PoW/PoS hybrid blockchain.” Like the BSV blockchain, it claims “unparalleled scalability,” security, low fees, a focus on openness with regulatory compliance, and parallel transaction processing using “tree graphs” to reduce confirmation times. . Its native asset is the $CFX token.

Conflux also said the event was based on a discussion of requirements related to China’s international Belt and Road Initiative, a government program to streamline physical and electronic trade routes. The objective was to develop a blockchain platform and demonstration application that meets these needs and supports “multi-country deployment and multi-actor cooperation supervision” and “cross-border cooperation in the economic, trade and cultural fields” . (Open blockchain networks support these features.)

Some technology press outlets claimed that the event was further evidence that the Chinese government continues to be interested in blockchain technology, despite years of bans on speculative assets and mining (in fact ). However, this event should not be seen as official government endorsement of one blockchain over another. The use of the term “Belt and Road” in the event title merely expresses its focus and should not be taken as a claim to be an official component of the B&R Initiative.

Yes, China is still considering blockchain

To be fair, despite years of “China bans BTC” media metaphors, Chinese authorities have never rejected blockchain technology. Their main objection has always been to the wild market speculation (and associated fraud) that comes with digital assets. China has legitimate concerns that millions of people could lose their savings in trading digital trinkets, as the population’s new wealth creates a relatively naive retail investment market. There was already an example of this. There were also concerns that block reward mining operations were taking advantage of energy subsidies in some regions to line their own pockets.

China continues to maintain interest in blockchain technology development despite restrictions on ICOs and other speculative digital assets. The country has hosted several conferences over the years aimed at exploring what other benefits blockchain can offer.

The People’s Bank of China (PBoC) has been conducting its own investigation into the use of digital currencies since 2014 (the same year that the first “China ban on Bitcoin” rumors surfaced), and has been conducting its own research on the use of digital currencies for several years (CBDC). The central bank has hinted that it is developing a digital currency. At some point it comes into its own.

Officially named the “digital renminbi (RMB)” and commonly referred to as “digital renminbi” or “e-CNY,” the currency is the first CBDC-like asset to undergo public use testing in 2020. It became. E-commerce and IT companies Alibaba (NASDAQ: BABA) and Tencent (NASDAQ: TCTZF) participated, as well as Huawei, JD.com, credit card company UnionPay, and major brand retailers.

Although the digital yuan is often reported in the blockchain industry media, the digital yuan is not operated on a blockchain basis. The People’s Bank also said that the currency is intended to facilitate local cash transactions in daily life, but is not intended to replace savings in bank accounts. The central bank also said that the digital yuan should not be used internationally and (in response to other rumors) is not meant to replace a globally used currency such as the US dollar.

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