Crypto enthusiasts and industry observers around the world have been closely monitoring China’s stance on cryptocurrencies. In the past, the country has exhibited a turbulent relationship with digital assets, imposing strict regulations and even banning initial coin offerings (ICOs) and cryptocurrency exchanges. 

However, in a surprising turn of events, the Chinese government appears to be shifting its perspective and embracing the potential of the crypto sector’s related segments. This newfound interest is evident in the recently unveiled “Web3 Innovation and Development Whitepaper,” presented at the prestigious Zhongguancun Forum by the Beijing Municipal Science and Technology Commission, also known as the Administrative Commission of Zhongguancun Science Park. 

With this landmark document, China acknowledges the inevitability of Web3 technology and recognizes it as a pivotal force driving future developments in the Internet industry.

Change Of Heart? China Embraces Crypto

According to The Paper, the whitepaper focuses on key research areas within the web3 industry, including artificial intelligence (AI), XR interactive terminals, and content production tools. The recognition of these areas highlights the Chinese government’s acknowledgment of the significant advancements made in emerging applications like digital populations and collections.

The commission’s primary objective is to establish Beijing as a leading global innovation hub for the digital economy. To support this vision, the government plans to allocate a minimum of 100 million yuan ($14 million) annually until 2025. 

This substantial funding commitment, announced by Yang Hongfu, the director of the Zhongguancun Chaoyang Park management committee during the forum, underscores the government’s determination to foster an environment conducive to technological breakthroughs. 

Zhongguancun, often referred to as China’s Silicon Valley, is poised to play a pivotal role in this transformative journey.

Addressing Development Challenges

While the whitepaper represents a bold step towards embracing Web3 technology, it also acknowledges the challenges that must be overcome and the need for policy changes. 

According to the document, “The current development of the Internet 3.0 industry in Beijing still faces challenges in terms of technical and talent support capabilities, industrial chain integrity, and legal norms.” 

Recent Developments And Signals Of Changing Stance

These developments have captured the attention of industry observers, raising questions about China’s evolving position.

One significant event that caught the attention of the crypto community was the airing of a cryptocurrency segment on the state-owned China Central Television (CCTV). Notably, the segment prominently featured the Bitcoin logo and showcased a Bitcoin ATM located in Hong Kong. 

CCTV (China Central Television) just broadcasted crypto. It’s a big deal. The Chinese speaking communities are buzzing. Historically, coverages like these led to bull runs.

Not saying past predicts the future. And not financial advice.https://t.co/2wcArnPI93

— CZ Binance (@cz_binance) May 24, 2023

The inclusion of these elements in a state-owned media broadcast is highly noteworthy, so much that industry figure Changpeng “CZ” Zhao, the CEO of Binance, pointed out the significance of this coverage.

-Featured image from Canva