Forbes India 15th Anniversary Special

Beijing promotes Web3 innovation and development, releases white paper

Coinciding with the new digital asset regulations of Hong Kong, the paper's release is seen as a significant step forward in China's stance towards the crypto industry

Shashank Bhardwaj
Published: May 29, 2023 09:15:35 AM IST

Beijing promotes Web3 innovation and development, releases white paperImage: Shutterstock

A document titled “Web3 Innovation and Development White Paper”, released by Beijing’s municipal government, aims to stimulate advancements in the Web3 industry. The paper was unveiled at the Zhongguancun Forum and acknowledges Web3 technology as an “inevitable trend for future Internet industry development.“

The Beijing Municipal Science and Technology Commission aims to establish Beijing as a global innovation hub for the digital economy. It intends an annual allocation of at least 100 million yuan ($14 million) until 2025.

The director of the Zhongguancun Chaoyang Park management committee, Yang Hongfu, also mentioned that Zhongguancun is commonly recognised as China’s Silicon Valley while talking about the funding.

The document focuses on Beijing’s purpose of enhancing policy support and speeding up technological advancements for facilitating the growth of the Web3 industry.

Hong Kong’s cryptocurrency regulations are set to commence on June 1 and so China’s move comes at an intriguing time. The Securities and Futures Commission of Hong Kong had recently introduced a new rulebook for the cryptocurrency industry that allows retail investors to participate in crypto trading.

In contrast to the United States’ stance on cryptocurrencies, Hong Kong continues to make efforts to attract crypto companies. China had itself banned the use of cryptocurrencies in 2021, but with the release of the Web3 white paper, it appears that China is changing its stance and is signalling an open outlook towards the crypto industry.

On May 23, a cryptocurrency segment aired on the state-owned China Central Television, a state-owned broadcaster, had also focused on cryptocurrency developments. It featured the logo of Bitcoin along with a Bitcoin ATM in Hong Kong.

Often called the next evolution of the decentralised web or internet, Web3 has use cases in other industries like supply chain, healthcare and governance as well. With such investments, Beijing continues to position itself as an integral part of the digital economy.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash