China’s Communist Party and State Council have announced plans to build a national blockchain network as part of a broader strategy to expand the digital economy. The policy document, titled “Opinions of the CPC Central Committee and the State Council on Developing New Productive Forces,” was made public by Xinhua.
This initiative frames blockchain as a key component of China’s digital economic expansion, though the country’s ban on cryptocurrency transactions remains in effect. The document does not mention specific cryptocurrencies like Bitcoin. Instead, it outlines broader goals such as digitizing manufacturing, developing a national integrated computing-power network, and advancing the “Eastern Data, Western Computing” project.
Beijing’s support for blockchain as infrastructure could create opportunities within enterprise and government systems. However, this does not signal a change in the prohibition of private cryptocurrency trading for mainland residents. China’s existing state-backed Blockchain-based Service Network (BSN) currently supports government and business applications while preventing cryptocurrencies like Bitcoin from operating on its platform.
It remains unconfirmed whether the proposed national system will build upon the BSN. The policy also includes a caution against prioritizing virtual activities over the real economy or fostering market bubbles. This suggests a focus on practical integration with manufacturing and other economic sectors rather than unrestricted token speculation.
Potential blockchain applications mentioned include atomic settlement of tokenized assets and regulated controls for on-chain financial products. However, the policy document does not specify the design of China’s national network or how these applications will be implemented. This development aligns with the broader trend of institutional capital pushing blockchain into real infrastructure.
Following the announcement, investor interest in Conflux, a China-linked blockchain, reportedly increased. The cryptocurrency CFX saw a rally, climbing from Saturday morning and reaching highs above $0.07 on Sunday. By 8:00 a.m. EDT on Sunday, October 11, CFX was trading near $0.066, representing an increase of over 26% from its previous close. This surge reflects speculative demand driven by the news.
CFX is described as China’s only regulatory-compliant public blockchain. This perception is based on Conflux’s collaborations with state-backed corporations, its approach to unregulated crypto token sales in China, and the academic and professional ties of its founders to state-run Tsinghua University. However, the policy document does not name Conflux as the operator of the proposed national network, nor does it confirm the use of CFX as its token.
The rally in CFX prices is attributed to market association and potential future benefits, rather than a confirmed government selection or integration. The “China narrative” can quickly attract speculative demand. A durable fundamental case for CFX would require evidence of its involvement in pilot programs, the establishment of standards, or the deployment of infrastructure.
The policy announcement serves as a significant signal for blockchain infrastructure development in China. However, until authorities provide details on implementation standards, governance, or participating networks, it does not confirm CFX’s inclusion in the national blockchain network. This situation highlights the evolving landscape for blockchain in institutional finance, as seen with MindWave Innovations building blockchain infrastructure for institutional finance.
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