Huobi, one of the largest Chinese cryptocurrency exchanges has recently signed an agreement with the Belt and Road Initiative (BRI) in order to develop blockchain technology for finance-related projects in China.
The agreement is the first step of a long partnership between the two parties, and the goal is to create a blockchain-based financial network for countries participating in BRI.
What is BRI?
The BRI is a progressive initiative of the Chinese government, which aims to create developmental opportunities in several key sectors for the country and its partners.
Currently, the initiative is focusing on infrastructure and investment opportunities for China. In addition to its China focus, the project includes 152 partnering countries including Europe and America.
Ever since the introduction of this initiative in 2013, China has been aiming to become a leading force in global infrastructural development. Now, to boost their activity further, the government has successfully negotiated Huobi’s participation in the project.
The BRI initiative has a wide span of activity and involves the population of numerous countries, which amounts to close to five billion people. Technically, BRI has the potential to have a positive effect on about 60% of the world’s population. This makes the introduction of blockchain technology to the initiative one of the largest blockchain projects globally.
Bringing Blockchain To Finance
With the introduction of Huobi as an institutional partner, BRI is aiming to reap the benefits decentralized ledgers have to offer by bringing blockchain to finance.
The partnership was made even more official with the introduction of a new forum titled International Cooperation Forum of Blockchain and Digital Finance. This forum will bring together several blockchain-based enterprises like Huobi and China Zhongke Technology Investment, as well as quite a few BRI members.
The main goal of this cooperation is to rely on blockchain technology to create and support numerous new roads, railways and power stations. What blockchain brings to the project is the ultimate connection between these separate projects.
Thanks to the capabilities distributed ledgers offer, all sub-projects of the BRI will be easy to monitor and manage. With this unified blockchain connectivity the management will be able to distribute funding and resources much more effectively, which will boost the productivity of the whole initiative.
According to the announcement, Huobi and BRI will aim to complete most of these projects by the end of 2049. This end date is somewhat symbolic, especially for the Chinese state, as the country will celebrate a hundred years since it became a republic.
Aside from the BRI’s blockchain initiative, the Chinese government has been increasingly active when it comes to blockchain solutions. During the past several months, the government has been steadily rolling out funding and plans for the incorporation of blockchain technology into the country’s systems and operations.
Most of these solutions are focusing on areas like healthcare and tourism. Until now the government has allocated more than USD 142 million worth of funding towards blockchain projects.
This increased activity towards blockchain optimization puts the Chinese state at the top of the ranking when it comes to blockchain adoption.