China orders national blockchain network in 19-measure policy directive
In brief
- China's top leadership ordered construction of a national blockchain network in an October 9 policy document.
- The document lays out 19 measures, including a nationwide computing power network, Crypto Briefing said.
- 16 central departments and 27 centrally administered state-owned enterprises are directly involved, per Crypto Briefing.
- BSN, the network's foundation, has operated since 2020 and prohibits tokens and crypto assets.
- The program extends digital yuan capabilities to support integration and cross-border trade.
What the directive covers
The document lays out 19 measures, according to Crypto Briefing's account. Two of the headline goals are a national blockchain network and a nationwide integrated computing power network. The stated purpose is to tighten the link between the real economy and the digital one.
Crypto Briefing reported that the initiative directly involves 16 central government departments and 27 centrally administered state-owned enterprises.
The directive also leans on resources from the "East Data, West Computing" project (the effort to route data generated in China's economically dense eastern regions to computing centers in the west) as part of a broader push into intelligent manufacturing and industrial innovation.
Built on BSN, not on crypto
The new network doesn't start from scratch. It builds on the Blockchain-based Service Network, or BSN, which has operated since April 2020. BSN is a state-governed network designed for compliant enterprises, and its rules explicitly prohibit tokens and crypto assets.
Crypto Briefing said the new policy is designed to consolidate and monetize infrastructure that's already in place. It also said the policy maintains a clear stance against cryptocurrencies and public blockchain protocols.
Tokens still aren't part of the picture.
The program extends existing blockchain and digital yuan capabilities instead. The digital yuan is China's central bank digital currency, and the initiative is meant to support its integration and help facilitate cross-border trade.
What it means for data markets
Crypto Briefing called the order one of the most explicit endorsements of blockchain technology Beijing has issued to date. Its analysis suggested the move could mean consolidation of existing assets under state frameworks, rather than openings for new tokenized ventures.
The outlet went a step further. If Beijing successfully pilots regulated markets for data, Crypto Briefing argued, it creates a template in which information is owned and traded under tight state oversight.
Frequently asked questions
What is China's Blockchain-based Service Network (BSN)?
BSN is a state-governed network designed for compliant enterprises that has operated since April 2020. It explicitly prohibits tokens and crypto assets. According to Crypto Briefing, China's new national blockchain directive builds on BSN.
Does China's national blockchain network allow cryptocurrencies?
The network builds on BSN, whose rules explicitly prohibit tokens and crypto assets. Crypto Briefing reported that the new policy maintains a clear stance against cryptocurrencies and public blockchain protocols.
How does the directive relate to the digital yuan?
The digital yuan is China's central bank digital currency. The program extends existing blockchain and digital yuan capabilities, and the initiative is meant to support the digital yuan's integration and help facilitate cross-border trade.
