Yao Qian, a key developer in China’s central bank digital currency (CBDC) project, has asked the Chinese government to boost web3 technology development.
Strengthening web3 research, according to Qian in an academic article, is critical for China’s future internet infrastructure.
Qian had led the People’s Bank of China’s digital money initiative. He then became the Director-General of the Science and Technology Regulatory Bureau of China’s securities regulator.
Qian detailed the merits of web3 in a paper published in the China Journal of Finance, describing it as a user-centric system that gives online users more authority over their identity and data. Qian also outlined five ways the government may take to foster web3 innovation.
After 30 years of development, the Internet is now at an important point in the evolution of Web 2.0 to Web 3.0. Strengthening Web 3.0 forward-looking research and strategic prediction is undoubtedly of great significance to the construction of China’s future internet infrastructure.
Qian’s web3 development strategy
Building a high-quality online infrastructure with defined ownership, duties, and security, according to Qian, is fundamental to advancing development. He criticized the web2 model’s shortcomings in terms of development tools and technological standards.
Good governance, according to Qian will also foster technological innovation by creating a safe environment for innovators and minimizing channels for criminal operations, which is a big issue in China and a driving force for the country’s ban on cryptocurrencies last year.
According to Qian, establishing common standards and fostering network interoperability will enable internet collaboration. He also demanded that the government provide clear and equitable digital tax standards, as well as a legal framework for decentralized autonomous organizations (DAOs).
Cryptocurrencies are not part of China’s web3 plans
China, which was once the world’s crypto capital in terms of mining and businesses, unexpectedly cracked down on the industry in 2021, outright banning most types of crypto. The country, however, has not abandoned blockchain technology.
With the introduction of the digital yuan earlier this year, it became the first developed economy to launch a CBDC. The country has set aside zones to test blockchain technology, with use cases in data sharing and cost reduction in mind.
NFTs are still technically legal in China, and tech giants Alibaba and Tencent have invested in them.