A source familiar with the matter said the rift was caused by the “pushback from its core, state-owned members on the public chain integrations.” The consortium is led by State Information Center, the China Mobile Communication Corporation and China Union Pay – all state-controlled entities.
The source noted that the original plan intended to add five blockchain networks to BSN: Ethereum (ETH), EOS (EOS), Nervos (CKB), NEO (NEO) and Tezos (XTZ). They also indicated that this pushback has caused delays and uncertainty about future deployment.
Two BSNs will be integrated
A Chinese media outlet reports that although the two entities are going to be independent, five of the BSN-China nodes will be connected to BSN-International. At the same time, it notes that these five nodes would have to fully comply with the appropriate local laws and regulations.
This development indicates that despite chairman Xi’s enthusiasm for blockchain technology, local elites remain uneasy about public blockchain networks that cannot be easily censored or controlled.
Blockchain tech and equity trading
Meanwhile, the China Securities Regulatory Commission (CSRC) recently issued a letter approving five regional equity markets, Cointelegraph reports. They will include equity centers in Beijing, Shanghai, Jiangsu, Zhejiang and Shenzhen. These and other regions received authorization to begin experimenting with a blockchain pilot in early July.
According to Beijing Local Financial Supervision and Administration, the next step for the CSRC is to guide Beijing Equity Trading Center to carry out the blockchain pilot. The trading center in Beijing has allegedly built a “relatively perfect infrastructure” for equity registration, custody, and transaction transfer. The administration notes that it has taken the lead in online equity registration custody and equity change of enterprises in China.
As of June 30, 2020, Beijing’s Equity Trading Center has served more than 1,000 unlisted joint-stock companies in the city. They have been entrusted with equity for nine commercial banks, including one rural commercial bank, one private bank, one direct selling bank and six rural banks. Their total share capital is more than 21 billion yuan, or roughly $3 million.
Beijing Equity Trading Center, together with Shenzhen Stock Exchange and other regional equity market operators, reportedly launched a regional equity market intermediary credit reference blockchain in late 2017.
China’s Internet Finance Association said the country’s use of blockchain technology has matured in recent years. Chinese experts also held a seminar to explore implementing blockchain in China’s controversial “social credit system.”