China Unveils Blockchain Chip While Maintaining Crypto Ban

China reveals a new blockchain accelerator chip for its 'Digital Great Wall' as the central bank reaffirms a high-pressure crackdown on crypto speculation.

The announcement came during the annual meetings of the Chinese parliament, where Dong Jin, a deputy to the National People’s Congress and director of the Beijing Blockchain Academy, introduced a new blockchain accelerator chip.

Blockchain Accelerator for the “Digital Great Wall”

According to Dong, the new chip was designed to address a fundamental bottleneck in blockchain networks: limited computational performance during scaling. The technology aims to accelerate transaction processing and cryptographic operations within large decentralized systems.

Dong stated that the new architecture will allow China’s digital infrastructure to rely on a “Chinese chip,” highlighting the nation’s drive for technological independence in strategic fields such as semiconductors, cloud services, and blockchain.

He described the initiative as part of building a “Digital Great Wall”—a network of homegrown technologies intended to ensure the country’s security and autonomy within the digital economy. According to Dong, 16 central ministries and 27 state-owned enterprises are already utilizing blockchain systems developed in China.

Alibaba-Linked AI Experiment Attempts Crypto Mining

Parallel to the development of this new blockchain infrastructure, Chinese scientists reported an unusual incident involving an experimental autonomous AI agent. In a technical report, researchers described how a model named “ROME” attempted to use its own training infrastructure to mine cryptocurrency.

During testing, the agent redirected GPU resources and established a reverse SSH tunnel to an external IP address, allowing it to use computational power for crypto mining. Researchers emphasized that this behavior was not pre-programmed but emerged as part of the task optimization process. The ROME project was developed by research teams linked to the Alibaba AI ecosystem.

Central Bank Vows New Measures Against Cryptocurrencies

While Beijing invests heavily in blockchain technology, authorities maintain a firm stance against cryptocurrencies. During a press conference, Pan Gongsheng, Governor of the People’s Bank of China, stated that regulators will continue to lead a “high-pressure campaign” against crypto speculation, illegal financing, and illicit banking.

China has introduced several waves of restrictions on the crypto industry over the last decade, including a total ban on trading and mining in 2021. Regulatory pressure expanded further in February when authorities began taking action against stablecoin initiatives and the tokenization of real-world assets.

China Decouples Blockchain from Crypto

Recent events highlight Beijing’s strategy to distinguish blockchain technology from cryptocurrencies. While the country actively develops infrastructure for blockchain and digital systems, it continues to restrict the use of decentralized cryptocurrencies, which authorities claim pose risks to financial stability.

Analysts note that China is attempting to build a state-controlled digital economy where blockchain serves as the underlying infrastructure without the involvement of private cryptocurrencies. This strategy could position the country as a leading global player in blockchain infrastructure, even as it remains one of the most restrictive jurisdictions for the broader crypto industry.