China is never far from the news, but this year it has certainly had the spotlight on it, due to the Covid-19 pandemic. This wasn’t really the negative publicity the country wanted. This week it is launching something that is hopefully less perilous than a virus — a national blockchain initiative.
According to Coindesk, “China will officially launch a major new blockchain initiative called the Blockchain-based Services Network (BSN) this week.”
What is China’s BSN?
President Xi announced it in December 2019, but that news was swept away by the virus-related news, but now the West is recognizing the significance of the BCN.
Professor Michael Sung of Fudan University describes it: “Essentially, the BSN will be the backbone infrastructure technology for massive interconnectivity throughout the mainland, from city governments, to companies and individuals alike. The network will also form the backbone to the Digital Silk Road to provide interconnectivity to all of China’s trade partners around the globe.”
A consortia founded the BSN. They include: “the State Information Center (China’s top-level government policy and strategy think tank affiliated with the National Development and Reform Commission), China Mobile (China’s largest national telecom with over 900 million subscribers), China Unionpay (the world’s top payment and settlement provider with eight billion issued credit cards), and Red Date Technologies (the main blockchain architect for the BSN).”
It’s the post Covid-19 answer for trade
The BSN launch will allow companies to access ultra-low cost blockchain cloud computing services. Target pricing is less than $400 USD/year, which would allow any SME or individual access to the critical tools to participate in the digital economy and drive adoption and financial inclusion opportunities.
Professor Sung believes “The BSN can facilitate increased global trade and bilateral economic activity to buffer against systemic shocks and great rifts that have been exacerbated by mistrust and differences in ideology.” He adds, “This is particularly relevant in a post-COVID-19 world where the ability to digitally conduct business online will be paramount in the new normal. “