China launches national blockchain network; Without digital currency and focused on data

According to ICT News; The Central Committee of the Communist Party and the State Council of China issued a decree on October 9, 2026 (17 October 1405), according to which a nationwide blockchain network will be established to better manage data and connect the real economy to the digital sector. This program, along with the development of data processing centers […] by China, will launch a national blockchain network; Without digital currency and with a focus on data, the first time in ICT News Reference A

According to ICT News; The Central Committee of the Communist Party and the State Council of China issued a decree on October 9, 2026 (17 October 1405), according to which a nationwide blockchain network will be established to better manage data and connect the real economy to the digital sector. This program is implemented along with the development of data processing centers and without the presence of independent digital currencies to prevent the formation of financial bubbles in the economy.

National Blockchain Network; Data-driven infrastructure

This decree has allocated one of the 19 economic measures to the construction of the "National Blockchain Network". The network will sit alongside the National Integrated Computing Network to unify the country's data infrastructure. Contrary to what one might think, the decree makes no reference to Bitcoin or other digital currencies. The main goal is to use blockchain technology to manage data and connect the real economy to the digital sector, not to revive cryptocurrency trading.

In the same document, the Chinese government warned that the authorities should avoid "creating economic bubbles" and "neglecting the real economy in favor of the virtual economy."

Registering ownership of data assets

This decree emphasizes "identification of ownership of data assets, transaction market, distribution of rights and benefits". A mechanism for "efficient and cross-border flow of data" is also proposed. Government entities can register the ownership of their data assets and connect data centers in eastern cities to western regions.

The Chinese command specifically supports the "Data East, Compute West" project. This project transfers data generated in eastern cities to data centers in western regions to utilize the energy and space capacity of those regions.

Despite the support of blockchain technology, the ban on cryptocurrency trading in China remains firmly in place. In February 2026, China's central bank and seven other institutions reaffirmed the ban. Beijing's digital strategy focuses on the digital yuan (e-CNY), which has been emphasized in the central bank's new five-year development plan.

China had previously launched BSN (Blockchain-based Service Network) in April 2020. According to Stanford University's DigiChina project, the network does not support independent digital currencies such as Bitcoin. It is not clear whether the new national network will be built on the basis of BSN or will have an independent infrastructure.

Current applications of the chain blockchain network

According to Dong Jin, member of the National People's Congress and president of the Beijing Academy of Blockchain and Edge Computing, China's national blockchain network is currently being used by 16 central ministries and 27 central state-owned enterprises. In the field of taxation, billions of digital invoices are processed annually on this network. In cross-border trade, more than 300,000 companies have connected to this network, and the value of cross-border trade facilitated by it has reached 1 trillion yuan (about $138 billion). In global payments, this technology has been combined with the digital yuan, creating a new channel for cross-border transactions.

Dong Jin's team has developed a dedicated 96-core accelerator chip for blockchain that increases performance by 50 times and solves the computational bottleneck of large-scale blockchain networks. Also, an integrated software-hardware blockchain operating system has been developed with 3 million lines of open source code.

The Conflux (CFX) token, known as China's only regulatory-compliant public chain, surged more than 26% to over $0.07 after the news broke. However, experts have emphasized that the decree is a domestic infrastructure initiative and has no direct impact on global cryptocurrency markets.

National Blockchain Network and Digital Yuan are two separate projects. The digital yuan is the digital currency of China's central bank, while the blockchain network is a technological infrastructure for managing data and connecting the real economy to the digital one.

Artificial intelligence and quantum applications

This mandate is not limited to blockchain, but also includes the Artificial Intelligence Plus (AI+) Action Plan and the development of quantum technology.

The implementation of this decree is entrusted to the Central Financial and Economic Affairs Commission and the National Development and Reform Commission (NDRC).

China's mandate to launch a national blockchain network represents a pragmatic and infrastructure-focused approach. Instead of following the Western model of decentralized cryptocurrencies, Beijing has focused on using blockchain as a data management tool and connecting the real economy to the digital one. This approach is consistent with China's economic philosophy, in which the government plays a central role in guiding technology development.

The smart thing about this strategy is to separate the technology from its financial application. China enjoys the benefits of blockchain (transparency, security, traceability), but avoids its financial risks (price volatility, speculative bubbles). This approach could serve as a model for other countries looking to use blockchain without facing the challenges of decentralized cryptocurrencies.

However, the main challenge of this project is gaining the trust of users and companies in a centralized network. While public blockchains such as Ethereum emphasize transparency and decentralization, the Chinese network is based on government control and centralized data management. Whether this model can be widely accepted in the long run is a question that the future will answer.