Blockchain News from China: Crypto Mining, Bitmain & Canaan IPO, CBDC
NEWS
November 11  |  3 min read

Recent Blockchain Developments in China: Timeline

The COIN360 Editorial Team

October 25: China’s president urges the country to speed up blockchain adoption.

China’s President Xi Jinping encourages the nation to expedite the adoption of blockchain technology as, according to him, it is at the core of technological innovation.

October 28: Blockchain-related Chinese A-shares surge 10%, searches for blockchain and bitcoin skyrocket.

The Chinese stock market skyrocketed with nearly every blockchain-related A-shares showing maximum daily gains of 10% (the daily limit). The surge came on the heels of the news of President Xi Jinping's blockchain-related statement. Meanwhile, the latest Bitcoin price rally, coupled with the encouraging statement from the Chinese President, has apparently caused the steep increase in the number of WeChat searches for “blockchain” and “Bitcoin” over the past couple of weeks.

On the same day, October 28, the People’s Bank of China confirms that it is close to rolling out its digital currency, intending to be the first central bank to issue a digital currency.

The new digital currency will be called DCEP (digital currency electronic payment) and will be able to “achieve real-time collection of data related to money creation, bookkeeping, etc., providing a useful reference for the provision of money and the implementation of monetary policies,” according to Huang Qifan, vice president of the China International Economic Exchange Centre.

October 29: Canaan, the second biggest Chinese mining company, announces its plans to conduct an IPO in the US.

If the initial public offering goes live, the firm could become the first Chinese mining company to be publicly traded in the US. According to unconfirmed reports, the trading bell on Nasdaq is scheduled for November 20.

October 30: Chinese cryptocurrency hardware manufacturer and crypto mining pool operator Bitmain files a confidential application for an IPO with the U.S. SEC.

Bitmain’s IPO, which has been pushed forward by Bitmain co-founder Jihan Wu and Bitmain CFO Liu Luyao, is reportedly being sponsored by the German multinational Deutsche Bank.

October 30: The local government of the Chinese city Guangzhou announced the establishment of a 1B yuan ($142M) blockchain fund.

Each year, the fund will choose two companies that develop “no-coin” public blockchains or federated blockchains and sponsor them with up to $1.4M and $425K subsidies, respectively. Apart from public blockchains and federated chain projects, the fund plans to subsidize companies providing blockchain information services, dApps, and local universities. The blockchain community welcomed the announcement.

November 6: The National Development and Reform Commission of the People’s Republic of China (NDRC), the country's top-level agency, dismisses an earlier proposal to phase the bitcoin mining industry out of the country.

An earlier draft of the new Catalog for Guiding Industry Restructuring targeted bitcoin mining as one of the industries to be eliminated from the country. However, the final version of the new catalog does not list bitcoin mining and other virtual currency mining activities, and there are no mentions of virtual currencies or bitcoin mining in the document.

November 11: Global market intelligence firm IDC concludes that China's expenditure on blockchain technology will likely increase at an annual compound growth rate of over 65%, exceeding $2 billion in 2023.

According to an IDC report, this year most blockchain expenditure went to the banking sector. Researchers expect that with the growth of blockchain use-cases in such industries as manufacturing, retail, and professional services, China will be ready to invest more in developing blockchain technology solutions for the afore-mentioned industries.