China’s Internet Finance Working Committee(CIFC), a public sector organization, approved a nationwide ‘blockchain reform’ action plan on August 28 in bid to push forward the development of non-token blockchains in China.

According to the official document published on the website of China Communications Industry Association Blockchain Specialized Committee(CCIAPCB), the CIFC, together with the CCIAPCB and the National Action Committee on Blockchain Reform will jointly establish a national ‘blockchain reform’ leading group, a ‘ blockchain reform’ fund and build a resource allocation platform. The three entities will also help set up a pilot zone, a lab and a tech team with a focus on ‘blockchain reform’, utilizing the technology to empower the real economy.

The CIFC is not backed by any government department, while the CCIAPCB is a unit of China Communications Industry Association(CCIA) which is guided by the Ministry of Industry and Information Technology(MIIT) . Yu Jianing, former director of the Institute of Industrial Economics at the MIIT , serves as the deputy director of CCIAPCB.

What is Blockchain Reform?

Blockchain reform refers to the process of transforming blockchain thoughts, blockchain applications and the way combining blockchain and other new technologies. The purpose of this reform is to take advantage of blockchain technology to empower the real and digital economies while complying with the law.

Nearly 200 blockchain startups, media outlets have reportedly participated in the blockchain reform across the country, and nearly 10 industrial parks have shown great interest in it.

As the blockchain boom in China gives rise to illegal fundraising through token selling and crypto scams, the authorities step up their efforts to crack down on cryptocurrency trading and ICO activities on one and, and want to spearhead the blockchain revolution on the other hand. The blockchain reform initiated by non-official organizations though, it is likely welcomed by the government agencies as it downplays the role of “virtual currency”,a thorn in the government’s side.