The Chinese government has released a white paper on Web3, signaling a potential shift in its policy towards cryptocurrencies.
The white paper, titled “Web3 Innovation and Development White Paper (2023),” was released by the Beijing Municipal Science & Technology Commission (Zhongguancun Chaoyang Park).
The white paper emphasizes the potential of Web3 technology, which it defines as “the third generation of the Internet” that is characterized by decentralization, security, and openness.
The white paper also acknowledges the challenges that Web3 faces, such as the need for further development and regulation.
The release of the white paper is significant because it comes at a time when China is increasingly embracing blockchain technology.
In recent months, the Chinese government has approved the use of blockchain technology in a number of sectors, including finance, supply chain management, and healthcare.
The release of the white paper could be seen as a sign that China is willing to embrace the potential of Web3 technology, even though it has been cautious about cryptocurrencies in the past.
It remains to be seen how China will regulate Web3 technology in the future, but the release of the white paper is a positive sign for the industry.
Implications of China’s New Crypto Stand
The release of the white paper has sparked a number of reactions, given China’s past relationship with the cryptocurrency sector.
Binance CEO Changpeng Zhao expressed his intrigue in a tweet on May 27, highlighting the interesting timing of the white paper’s release in conjunction with the forthcoming implementation of crypto regulations in Hong Kong.
Recent developments indicate a potential shift in China’s stance on cryptocurrencies, raising speculation about a change in policy after years of bans.
Notably, China Central Television (CCTV), the state broadcaster, aired a segment featuring the Bitcoin (BTC) logo, a significant event, according to Zhao. He suggested that, historically, similar coverage has been associated with heightened market activity and price surges.
The CCTV segment featured a sight of a Bitcoin ATM located in Hong Kong. The presence of a conspicuous blue Bitcoin logo and the option to “Buy Bitcoins” further sparked speculation regarding China’s shifting perspective on cryptocurrencies.
This news is noteworthy due to the profound impact it carries. Notably, in 2021, China implemented its most significant crackdown on digital assets banning mining, which reverberated as one of the major shocks to the crypto market in recent years. However, the market recovered, with Bitcoin hitting an all-time high in late 2021.