The National People’s Congress (NPC), China’s parliament, has suggested that there should be a government-backed blockchain development fund to create an enhanced governance system.
NPC and Chinese People’s Political Consultative Conference, which is the most potent political advisory group in the country, have recently launched their yearly sessions. These sessions are commonly known as the “Two Sessions” or “lianghui” meetings. The meetings have been ongoing since May 22.
The National People’s Congress ranks as the top legislative body in China. Almost 3,000 delegates from all over the country meet once per year to submit their proposals. Jieqing Tan, deputy to the NPC, proposed the setting up of a special fund for the blockchain sector development, according to a Beijing News’ report on May 23.
If it is accepted, the fund would be managed and operated entirely by the government. The primary aim of this fund is to support the development and growth of many promising blockchain enterprises. It is also meant to encourage blockchain technology innovation while simultaneously cultivating several unicorn enterprises in the blockchain industry, as Tan explained.
Smart Governance Using Blockchain
Tan is convinced that supporting the development of the blockchain technology will “modernize” the country’s governance system. Blockchain would be a vital tool to take China towards smart governance, making it a high-trust society. Moreover, it might enable China to gain an edge over the rest of the world in the future development of the technology, as elaborated by Tan.
He believes that by taking the technology innovation lead, China can better protect its national security and sovereignty. Tan also suggested that a clear national blockchain industry development plan is essential and should be well-defined. He explained that:
“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.”
Current Problems and Initiatives
The new job opportunities and new economic potential derived from blockchain are significantly tremendous. But, Tan said that today the number of limited blockchain enterprises, lack of talent, its scalability; and lack of information are the key challenge. These challenges have prevented the blockchain ecosystem from developing a majorly established ecosystem.
Based on previous reports, China’s central bank also acquired $4.7 million in funding for its blockchain trade platform for the next three years. The tax bureau of Beijing launched its blockchain invoicing pilot program for a more convenient, eco-friendly, and transparent future governance.