China publishes Web3 development white paper

China has had a rocky relationship with cryptocurrencies in the past, but the government is starting to grasp the possibilities in connected industries.

For instance, on May 27 local news site The Paper claimed that the government had issued a white paper designed to encourage growth and development in the web3 business.

This white paper examines the web3 industry’s foundational research topics, including AI, XR interactive terminals, and content creation software. It recognises the increasing importance of new uses, such as digital populations and collections.

Given China’s history with the cryptocurrency industry, the white paper’s publication caused responses. Binance’s CEO, Changpeng Zhao, indicated his interest in a tweet on May 27. He noted the white paper’s fascinating timing in relation to the upcoming adoption of crypto legislation in Hong Kong.

After years of prohibitions, recent events suggest China may be reconsidering its position on cryptocurrencies. According to Zhao, a major development occurred when China Central Television (CCTV), the country’s official broadcaster, aired a feature incorporating the Bitcoin (BTC) logo. He hypothesised that comparable publicity in the past had been linked to increased market activity and price spikes.

A Bitcoin ATM might be seen in Hong Kong during the CCTV report. The option to “Buy Bitcoins” and a clear blue Bitcoin logo have added fuel to the fire of speculation about China’s changing stance on cryptocurrency.

In 2021, China banned the mining of digital assets in what was one of the biggest shocks to the cryptocurrency industry in recent memory. However, the market eventually rebounded, and by late 2021, Bitcoin had reached a new all-time high.

Meanwhile, macroeconomic issues like these continue to drag on Bitcoin. At the time of publication, the maid cryptocurrency was worth $26,700, still less than $27,000.

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