Following the Chinese government’s announcement of plans to establish a new blockchain network nationwide, Conflux (CFX), a Chinese-linked cryptocurrency project, experienced a sharp rise. Th
Following the Chinese government’s announcement of plans to establish a new blockchain network nationwide, Conflux (CFX), a Chinese-linked cryptocurrency project, experienced a sharp rise. The altcoin’s price increased by approximately 28%, and the volatility in trading volume was also noteworthy.
A policy document released on October 9 by the Central Committee of the Communist Party of China and the State Council outlines the goals of establishing a national blockchain network and a nationwide integrated computing power network.
Under the new plan, China aims to more comprehensively integrate blockchain technology into its national digital infrastructure. Data sharing, coordination of computing resources, and the development of the digital economy are among the government’s top priorities.
A document jointly released by the Central Committee of the Communist Party of China and the State Council of China explicitly states that establishing a national blockchain network is among the government’s goals.
The document, published under the title “Views on the Development of New Qualified Productive Forces,” states that the real economy and the digital economy need to be integrated more comprehensively. In this context, it is planned that the state will improve data infrastructure, accelerate digital transformation in the manufacturing sector, and support industrial internet projects.
The document also states that China will advance its “Processing Eastern Data in the West” project, establishing an integrated computing power network that connects data centers and computing resources across the country. The planned national blockchain network is expected to be one of the components of this vast digital infrastructure.
The statement did not mention Bitcoin, Ethereum, or any other cryptocurrency. Nor did it provide any information regarding whether the planned infrastructure would be a permissionless, publicly accessible blockchain with its own token.
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Therefore, the decision does not mean that China is changing its current approach to cryptocurrency trading or lifting its cryptocurrency bans. China has long restricted cryptocurrency transactions while supporting the development of permissioned blockchain technologies for government agencies, companies, and industrial applications.
The new network is likely to be used in areas such as sharing public data, digital identity, supply chain tracking, financial reconciliation, and verification of industry data. However, the document does not specify the network’s technical architecture, launch date, budget, or which institution will operate it.
The National Development and Reform Commission of China’s plan for the period 2026-2030 also envisioned the implementation of a “national blockchain network construction project.” The latest document confirms that this goal has been included in China’s economic transformation plan by the country’s top political and administrative institutions.
The Chinese government’s announcement has increased user interest in Conflux (CFX), which is being promoted as a public blockchain compliant with regulations in the country.
Market participants viewed Conflux as one of the projects that could benefit from China’s plan to expand its blockchain infrastructure, resulting in an approximately 28% increase in the CFX price.
According to shared market data, Conflux’s trading volume in the last 24 hours reached approximately $204 million, while its total market capitalization stands at $357 million. The fact that trading volume accounts for approximately 57% of market capitalization indicates significant buying and selling activity for the altcoin.
On the other hand, CFX’s Relative Strength Index (RSI) rose to 63. This value indicates that the upward momentum is strengthening, but shows that the price has not yet reached the overbought region, traditionally considered to be above 70.
*This is not investment advice.
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