China has released a white paper on Web3, signaling a potential shift in the country’s stance on cryptocurrencies. The white paper, titled “Web3 Innovation and Development White Paper (2023),” was released by the Beijing Municipal Science & Technology Commission (Zhongguancun Chaoyang Park).
The white paper defines Web3 as “the third generation of the Internet,” and it emphasizes the technology’s potential to “reinvent the Internet.” The white paper also acknowledges the rapid growth of emerging applications like digital populations and collections.
However, the white paper also recognizes the development challenges and the need for policy changes. The white paper proposes that the current development of the Internet 3.0 industry in Beijing still faces challenges in terms of technology and talent support capabilities, industrial chain integrity, and legal norms.
Despite these challenges, the white paper is a positive sign for the cryptocurrency industry. It suggests that China is open to the potential of Web3, and it could lead to a more favorable regulatory environment for cryptocurrencies in the country.
Implications of China’s new crypto stand
The release of the white paper has sparked reactions, given China’s past relationship with the cryptocurrency sector.
Binance CEO Changpeng Zhao expressed his intrigue in a tweet on May 27, highlighting the interesting timing of the white paper’s release in conjunction with the forthcoming implementation of crypto regulations in Hong Kong.
Recent developments indicate a potential shift in China’s stance on cryptocurrencies, raising speculation about a change in policy after years of bans.
Notably, China Central Television (CCTV), the state broadcaster, aired a segment featuring the Bitcoin (BTC) logo, a significant event, according to Zhao.
He suggested that, historically, similar coverage has been associated with heightened market activity and price surges.
The CCTV segment featured a sight of a Bitcoin ATM located in Hong Kong. The presence of a conspicuous blue Bitcoin logo and the option to “Buy Bitcoins” further sparked speculation regarding China’s shifting perspective on cryptocurrencies.
This news is noteworthy due to the profound impact it carries. Notably, in 2021, China implemented its most significant crackdown on digital assets banning mining, which reverberated as one of the major shocks to the crypto market in recent years. However, the market recovered, with Bitcoin hitting an all-time high in late 2021.
In the meantime, Bitcoin continues to be weighed down by other othe factors like macroeconomic elements. By press time, the maid crypto was still trading below $27,000, valued at $26,700.
Is China’s Web3 white paper a bullish sign for crypto?
It is too early to say whether China’s Web3 white paper is a bullish sign for crypto. However, the white paper is a positive development, and it suggests that China is open to the potential of Web3.
If China does implement more favorable regulations for cryptocurrencies, it could lead to a surge in demand for digital assets.
