In a recent publication by the Central Committee of the Communist Party of China alongside the State Council, plans to create a national blockchain network have been outlined as one of the government’s priorities.
The report, titled “Perspectives on the Evolution of New Qualified Productive Forces,” emphasizes the need for a deeper integration between the real economy and the digital sector. It outlines initiatives for enhancing data infrastructure, expediting the digital transformation in manufacturing, and fostering industrial internet projects.
Furthermore, the document reveals that China aims to advance the “Processing Eastern Data in the West” initiative, which focuses on establishing a unified computing power network linking data centers and resources nationwide. This anticipated national blockchain network is intended to be a key element of this extensive digital framework.
Notably, the announcement did not address Bitcoin, Ethereum, or any other cryptocurrencies. It also lacks details on whether the upcoming infrastructure will support a public, permissionless blockchain with its own cryptocurrency.
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Is China Easing Its Stance on Cryptocurrency?
This decision does not imply that China is altering its existing stance on cryptocurrency trading or lifting its bans on these assets. Historically, China has imposed restrictions on cryptocurrency transactions while endorsing the development of permissioned blockchain solutions for government and enterprise use.
The new network is expected to facilitate applications such as public data sharing, digital identity verification, supply chain tracking, financial audits, and validating industrial data. However, specifics regarding the network’s technical framework, launch timeline, budget, and the managing entity remain unclarified.
The National Development and Reform Commission’s blueprint for 2026-2030 also included plans for a “national blockchain network construction project,” confirming that this aspiration is now part of China’s broader economic reform agenda as endorsed by high-level political and administrative bodies.
The announcement from the Chinese government has sparked increased interest in Conflux ($CFX), which is touted as a compliant public blockchain solution within the country.
Investors perceive Conflux as a promising opportunity aligned with China’s blockchain expansion strategy, leading to a surge of about 28% in the $CFX value.
Recent market data indicates that Conflux’s trading volume over the past 24 hours reached roughly $204 million, with a total market cap of $357 million. The trading volume representing about 57% of the market cap highlights substantial trading activity for this cryptocurrency.
Additionally, the Relative Strength Index (RSI) for $CFX has climbed to 63. This figure suggests strengthening upward momentum but indicates that the price has not yet entered the overbought territory, generally viewed as 70 and above.
*This does not constitute investment advice.