The government of Nanshan District of Shenzhen has signed an agreement with Huawei to accelerate the development of blockchain.

This would make the city a model for the semiconductor industry, according to U-Today.

Shenzhen is considered the world’s largest technology hub. It’s the place where Huawei went from a tiny telecommunications switch provider to one of the world’s biggest telecom operators.

The People’s Bank of China (PBoC) has joined up with Huawei to start testing its own digital currency in Shenzhen and Suzhou this year.

China is yet to alter its belligerent actions against Bitcoin. Since September 2017, the cryptocurrency has been outlawed in China, despite the fact that the country dominates 66 percent of the global mining output.

However, the blockchain technology holds great hope for the communist regime. President Xi Jinping earlier announced that they should benefit from the opportunity offered by blockchain, which resulted in a major crypto rally.

Blockchain necessary for economy

Bankers in China believe blockchain technology will boost the national financial system.

Hong Qi, chairman of Minsheng Bank, said the adoption of such state-of-the art technology is a top priority for China, and thus it should integrate into the banking and services sectors.

The Chairman also said:

“The full adoption of digital technologies such as blockchain is expected to accelerate the digital transformation and upgrade its agriculture, manufacturing, finance and other services in the next 10 years.”

Bankers in China also believe this topnotch technology will change the digital transformation in the country.

Minsheng is the first commercial bank in China to be operated by private enterprises. It offers loans to small and medium-sized enterprises. In addition, it is one of the first Chinese banks to adopt the blockchain technology.

Blockchain widely used in China

The number of companies using blockchain technologies reached 33,000 until the end of 2019, according to the data of China Blockchain Enterprise Development Research.

Blockchain-centric startups represent almost 57 percent of the total number, publicly-traded companies (28 percent), internet companies with blockchain business (23 percent), and financial institutions with blockchain projects (12 percent), according to the report.

In addition, more than 50 percent of these companies had 1 million yuan ($143,426) in capital at the time of establishment and registration.

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