Image: Cointelegraph

The deputy to the the National People’s Congress (NPC) has proposed establishing a special government-led fund for the development of the blockchain industry, Beijing News reported, according to Cointelegraph.

Jieqing Tan, who was attending the annual “two sessions” meetings of the Chinese government in Beijing on Saturday, said the aim of the fund is to support the development and growth of a number of promising blockchain enterprises, encourage blockchain technology innovation, and cultivate unicorn enterprises in the blockchain space

Tan believes supporting the development of the blockchain industry will “modernize” the country’s governance system.  

Blockchain technology will be a great tool for pushing China towards smart governance and a high-trust society, and it can also help the country to gain an upper hand globally in the future development of the technology, according to Tan. He said the initiative will enable China to better protect its sovereignty and national security. 

Tan suggested that a clear national blockchain industry development plan must be put in place. He explained, “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 challenges and initiatives 

The economic potential of blockchain is huge. However, Tan pointed out that currently the limited number of blockchain enterprises, scalability challenges, and a shortage of talent and information have prevented the blockchain ecosystem from developing a solid ecosystem. 

As Cointelegraph reported previously, China’s central bank also secured $4.7 million in funding for its blockchain trade platform over the next three years. China’s tax bureau has also announced a blockchain invoicing pilot application to facilitate eco-friendly, convenient and transparent governance.