A government-backed company in China that caters to blockchain services, the Blockchain-based Service Network (BSN), will go international later this year. However, there are concerns about the impacts of government surveillance on the blockchain technology sector.
BSN Plots Foreign Expansion amidst Worries about Government’s Surveillance
The BSN is reportedly plotting to allow foreign users access to its blockchain technology-related services. As Beijing advances its drive toward promoting a virtual ledger, the blockchain services provider will set up a version of its offerings for foreign users.
The BSN is an all-in-one shop that allows users to utilize blockchain technology in their local cloud. BSN’s services will let local users who don’t want to build their network from the ground up to access blockchain technology.
The Chief Executive Officer of the BSN told a local news outlet that his organization intends to float the foreign version of its services. He said that the new international sub-division, called the BSN Spartan Network, will be publicly accessible later in 2022.
The Beijing-based blockchain company doesn’t allow users to trade or invest in crypto for regulatory reasons. The government’s crypto ban and Beijing’s tough regulatory stance against the emerging asset class prevent the BSN from floating cryptocurrencies.
The blockchain services provider reportedly owns over 3,000 applications and 25k software technocrats in nearly 30 blockchain systems. The BSN said earlier this year that it was planning to create a government-supported fiat virtual money.
Government’s Probable Surveillance Threatens BSN’s International Plans
The Spartan Network intends to float about six government-backed blockchain services that wouldn’t operate crypto. The reports say that one of the services would include an Ethereum-based version.
However, the Ethereum-based platform wouldn’t utilize the Ether to process settlements. Users will reportedly pay US Dollars instead of the platform’s digital coin.
According to a representative of the BSN, the upcoming platform intends to limit the costs involved in utilizing public chains to the lowest rates. The representative added that cheaper chain services would allow more conventional Information Technology ecosystems and organizations to include publicly floated chains in their ecosystem.
It’s unclear whether foreign firms would participate in the Chinese state-backed blockchain company’s services due to the country’s monitoring activities over the digital assets industry. However, the BSN’s representative allayed fears about the government’s surveillance activities.
He said that the ecosystem would be open-source and protected from the government’s interference. He explained that the services provider wouldn’t be able to access any of the activities on the chain themselves.
Also, the executive stated that the company would invite external IT security experts to help secure its platform from the Chinese government’s eye. But it’s not clear whether Western organizations would receive the explanations and buy into the BSN’s offerings.
The BSN takes orders from a federal surveillance institution in China, called the National Development and Reform Commission (NDRC). Meanwhile, there are already fears that the People’s Republic would utilize the virtual Yuan to monitor users’ activities.