Chinese Hangzhou City Rolls Out Blockchain-Powered Data Exchange

Despite the regulation restriction on digital assets imposed by the Chinese authority, the Asian country has demonstrated massive interest in blockchain, Web3, and crypto technologies. Speaking at the Hangzhou 2023 summit, the Chinese authority launched a blockchain-powered data exchange.

The event was attended by 300 companies, including leading tech firms in China, including Huawei and Alibaba Cloud. Hangzhou’s summit allowed tech firms to showcase their latest developments.

China Leverages Blockchain Technology 

An update on the Chinese media station revealed that the Hangzhou Data Exchange will utilize the decentralized ledger technology to support buying and selling of technology data. The newly launched exchange will ensure that the data available on the platform is immutable and traceable.

In a separate writing, the National Laboratory of Blockchain and Data Security director Chen Chun outlined the features of the Hangzhou Data Exchange. Chun stated that the data exchange will utilize blockchain and computing technologies in data sharing across different departments. The data exchange has implemented advanced technologies to improve data security and privacy.

Chun believes that the data exchange will foster economic development in Hangzhou. In 2022, Hangzhou’s digital economy generated over 500 Chinese yuan, which equates to $69 billion.

Reflecting on the 2022 report, the revenue generated from the digital sector constituted 27% of Hangzhou’s gross domestic product. Before establishing the data exchange, Hangzhou’s internet court adopted blockchain in 2018 to address online crimes.

China Plans to Digitize the Economy through Blockchain

At the beginning of August, the Chinese city of Shanghai announced plans to establish a blockchain infrastructure in 2025. In the report, the regulators in Shanghai stated the blockchain infrastructure would support the digitization of the economy, public governance and the services offered by the public agencies.

Establishing Shanghai and Hangzhou blockchain-oriented projects marked a significant milestone for China to become a leader in tech and economic developments. Notably, China ranks among the first countries to launch the central bank digital currency (CBDC) e-Yuan successfully.

A statement issued by the Central Bank of China governor, Yi Gang, revealed that the CBDC transaction reached $249.33 billion in Q2 of 2023, a 100 billion yuan increase from August 2022. Gang noted that the CBDC has commonly been used in domestic retail payments. The CBDC has lately been used in the city of Jinan to settle payments in the transport sector.

In an exclusive interview with the Xinhua News Agency, Chinese President Xi Jinping stated that the e-yuan supported China to settle payments made through the local currency. President Jinping urged crypto-friendly nations in Asia, such as Hong Kong and Malaysia, to support each other in CBDC development.

The attempt to expand the government revenue streams has obliged the Chinese regulators to develop the nonfungible token exchange CDEX, which is currently under development.

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