There is an old saying in China: “Building the road is the first step to becoming rich.” Asian countries use infrastructure to boost the economy, and China is probably the most aggressive one — its annual average infrastructure spending is one of the highest at 8.3% of its gross domestic product from 2010 to 2015, according to data from Statista.
In the last two decades, China has built the most highways and high-speed railways, and it has now decided to extend the infrastructure development to a digital dimension. China’s “new infrastructure” plan includes blockchain technology, 5G, artificial intelligence and cloud computing as the new information infrastructure.
China’s research and exploration of blockchain technology and digital currencies have a longer history than people think. It started in 2014 when China’s central bank formed a special study group to research the feasibility of issuing digital currencies.
It wasn’t until October 2019 that President Xi Jinping announced blockchain a core technology, bringing this national strategy to people’s attention. The subsequent rollout of digital currency/electronic payment, or DC/EP, trials and Blockchain-based Service Network is a sign that the strategy is gaining momentum.