China’s top leadership has officially announced plans to construct a national blockchain network as part of a 19-measure economic blueprint, though the initiative explicitly excludes Bitcoin and public cryptocurrencies. Published on October 9 by the Communist Party’s Central Committee and the State Council, the policy document aims to integrate digital technology with traditional industry while warning officials against creating financial bubbles and abandoning the real economy for virtual ventures.
Key Takeaways
- 19 Economic Measures: Published on October 9 via Xinhua, China's new blueprint pairs a national blockchain network with a nationwide computing grid and the "East Data, West Computing" initiative.
- Strict Crypto Ban Maintained: Independent digital assets remain illegal in mainland China following a restated trading ban by the People’s Bank of China (PBOC) and seven other agencies in February.
- Focus on State Control: The plan prioritizes data ownership regulations, the state-backed Blockchain-based Service Network (BSN), and the steady development of the sovereign digital yuan.
State-Directed Blockchain Infrastructure
The policy text published by state news agency Xinhua places the national blockchain system alongside a nationwide computing grid within a dedicated section on merging digital technology with traditional industry. It also backs the "East Data, West Computing" project, which transfers data processing from eastern commercial hubs to data centers in western provinces, and demands formal rules regarding data ownership and trading. Specific regulatory details will be crafted by the Central Financial and Economic Affairs Commission and the National Development and Reform Commission (NDRC).
China has consistently separated permissioned ledger infrastructure from decentralized assets. The state-backed Blockchain-based Service Network (BSN), launched in April 2020, does not permit independent cryptocurrencies like Bitcoin, according to research by Stanford’s DigiChina project. Instead, Beijing continues to prioritize its sovereign digital cash initiative, following an August five-year plan from the PBOC pledging steady development of the digital yuan. Major global entities operating under complex regulatory constraints worldwide face similar compliance boundaries, as seen when Binance restricted 8 services and delisted 22 tokens in Brazil.
Super Cycle Speculation Meets Regulatory Realities
The directive arrived three days after Joseph Chee, chief executive officer of Nasdaq-listed Solana Company, made public comments on CNBC. Chee stated, "I think the crypto is going to go through another super cycle," linking that potential outcome to Beijing eventually permitting market access. However, he identified capital flight as China's primary structural obstacle and offered no timeline for policy changes.
Why It Matters
China's explicit division between permissioned blockchain architecture and public cryptocurrencies demonstrates Beijing's intent to harness distributed ledger technology strictly for industrial modernization and state surveillance. By coupling network development with the digital yuan and strict data ownership rules, government officials aim to enhance digital administration while blocking speculative capital flows. For global markets, this blueprint confirms that Chinese state adoption of blockchain technology will not translate into institutional demand or regulatory approval for Bitcoin.
