China’s Web3 Whitepaper Boosts Crypto Market

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  • China’s web3 plans have been reflected in positive moves in the crypto market
  • $86 billion was added to the crypto market cap following China’s advocation of web3 technology
  • China will invest tens of millions of dollars into a Beijing innovation hub

The crypto market has received a boost after China published a whitepaper over the weekend aimed at promoting innovation and development of the web3 industry. The crypto market jumped by $86 billion over the weekend, driven by China’s moves into the web3 arena, which will see the country invest 300 million yuan ($42 million) in an innovation hub in Beijing’s Chaoyang district over the next three years. China boosted the crypto market in 2019 after it announced the adoption of blockchain technology, and bagholders will be hoping that this news can provide a further boost in crypto prices.

China Banking on Web3

The whitepaper, published by the Beijing Municipal Science & Technology Commission and titled “Web3 Innovation and Development White Paper (2023)”, arrived on Saturday and caught many in the industry by surprise. The document states that web3 technology is an “inevitable trend for future Internet industry development,” and outlines plans to turn Beijing into a global innovation hub for the digital economy. To aid these plans, at least 300 million yuan (around $42 million) will be spent turning the city’s Chaoyang district into such a hub over the next 2-3 years.

The commission is otherwise known as the Administrative Commission of Zhongguancun Science Park, which is often referred to as China’s Silicon Valley, and the whitepaper was released through the Zhongguancun Forum.

Zhao Notes Timing of Announcement

The timing of the announcement was picked up by some, including Binance CEO and Chinese citizen Changpeng Zhao, who noted that the timing coincides with Hong Kong launching crypto trading for retail users this week:

The whitepaper backs up Zhao’s claim last week that a segment on China’s state-run TV channel, CCTV, about cryptocurrencies and which showed the Bitcoin logo was a “big deal”, opining that Chinese-speaking communities were “buzzing” about crypto after the segment aired.

This came just a week after China announced its plans to build a national blockchain academy in Beijing.