Chinese Parliament Suggests a Blockchain Development Fund

The National People’s Congress (NPC), China’s parliament, recently suggested the government create a blockchain development fund for building an improved governance system.

What does the NPC want?

The NPC and the Chinese People’s Political Consultative Conference is one of the most powerful political advisory body in the country. They have started their annual sessions recently which are known as “lianghui” or “Two Sessions.” The meetings have been ongoing since May 22.

NPC, on the other hand, is the top legislative body in China with about 3,000 delegated who meet once a year to submit their respective proposals. A Beijing News report from May 23 suggests that NPC deputy Jieqing Tan suggested the establishment of a special fund focused on the blockchain industry. The fund would be run by the Chinese government if it is accepted.

The fund will be used to support the growth and development of blockchain enterprises, encourage innovation in the sector, and create blockchain unicorn companies.

Governance via blockchain

Tan believes that China’s governance system could be modernized with the help of blockchain technology. Blockchains will help China push towards smart governance with a high-trust society. It could also help the country in gaining leverage in the field of technology development. He also thinks that taking this lead in technology, China would also be able to protect its national security as well as sovereignty.

He added, “From the bottom technology standard, middle industry application development to the top-level system design, the national blockchain technology, industry, and supervision three-dimensional strategic planning system should be well coordinated.”

Blockchains could help in unlocking new economic potential and will help in creating new job opportunities as well. Tan noted that the number of limited blockchain enterprises, lack of talent, less information, and scalability are some of the biggest problems preventing the entire blockchain ecosystem from developing.

The Chinese central bank recently secured $4.7 million in funding for its blockchain trading platform.