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China’s Chongqing Municipality May Establish A Government-Backed Digital Assets Exchange

China will establish a state-level digital currency exchange backed by the government? We cannot rule out the possibility.

Chong Qing Municipal Commission of Economy and Informatization issued a statement on its website Thursday night, saying the city plans to establish a blockchain-based digital assets exchange. The news went viral on China’s social media platforms, and uplifted crypto investors’ mood by offering glimmer of hope for the legalization of digital currency tradings in China.

Due to he sensitivity of the issue, the government agency removed the statement from its website this morning. But we can still find the news on the official website of Chongqing Municipal People’s Government.

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Since China banned ICO and shut down all domestic cryptocurrency exchanges last September, a few scholars and government officials have advocated to establish a regulated digital assets exchange this year. In May, Liu Xiaolei,a professor at the Guanghua School of Management of Peking University, said in a segment called “Dialogue” of China Central Television(CCTV) that “ we need to consider create a digital assets exchange”.

Moreover, Wang Pengjie, member of the 13th National Committee of the Chinese People’s Political Consultative Conference (CPPCC), suggested on March 3 that a regulated and efficient cryptocurrency exchange should be set up in China under unified coordination of various government agencies to help companies raise funds and to assist individual investors to receive capital gains.

It remains unclear whether Chongqing, a city known for its rapid economic growth and spicy hotpot,, will really create a blockchain assets trading platform in the end. But the undisputed fact is that the city aims to become another blockchain hub in China.

In the statement, the government agency listed five measures they will adopt to push forward the development of blockchain industry in Chongqing.

 First, focus on application of blockchain to finance and supply chain sectors; Second, set up a blockchain demonstration zone in Yuzhong District to draw in many well-known blockchain startups to settle in;

Third, develop a competitive blockchain industrial ecosystem, including an industrial development fund, an innovation alliance,and a digital assets exchange;

Fourth,support districts and industrial parks where the conditions permit to build platform-based, innovative and ecological blockchain industrial zone, and encourage major universities to offer formal courses on blockchain technology .

Fifth, increase the awareness of government officials on blockchain technology through training and visits to blockchain companies.

Chongqing is gearing up for the domestic competition in the blockchain arena. Many cities in China have been opening up their doors and offering attractive incentives to lure blockchain start-ups and talents, including Hangzhou, Guizhou,Guangzhou,etc.

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