22th June 2026
By Shubhii Verma
CAC Releases Draft Blockchain Identity Framework Built on China’s National Blockchain Network
China has released a draft framework for a state-backed distributed digital identity system and is seeking public feedback on the proposal, marking a significant step in the country’s efforts to modernize digital identity infrastructure using blockchain technology.
The draft regulations, published by the Cyberspace Administration of China (CAC), aim to promote the development, interoperability, and recognition of distributed digital identities across various digital services. Authorities say the framework is designed to strengthen the country’s national blockchain infrastructure while creating a standardized public service system for digital identity management.
Under the proposal, a distributed digital identity would function as a blockchain-based digital credential that allows individuals and organizations to manage and verify identity information across different online platforms. The system would include key components such as unique identifiers, cryptographic keys, verifiable credentials, and verifiable claims. These identities could be used for digital account management, login authentication, data authorization, and other online services.
The framework would operate on China’s national blockchain network and involve collaboration between government-authorized operators, identity verification agencies, credential issuers, and application service providers. Users who register would receive a unique digital identity identifier along with a real-name identity certificate issued through approved authentication institutions.
Government-Supervised Trust Model and China’s Centralized Approach to Decentralized Identity
According to the draft, authorized identity verification bodies would be responsible for confirming that a user’s digital identity accurately matches their real-world identity. These institutions would serve as trusted providers within the broader ecosystem, ensuring the reliability and integrity of digital identity credentials.
The proposal adopts several concepts commonly associated with decentralized identity systems, including blockchain-based credentials and selective data sharing. However, unlike many decentralized identity initiatives that emphasize individual privacy and self-sovereign control, China’s framework maintains a strong role for government-approved entities in managing trust and verification processes.
Industry observers note that the initiative reflects China’s broader strategy of combining emerging technologies with centralized oversight. The framework seeks to improve interoperability between digital services while supporting the government’s long-term vision for blockchain-enabled public infrastructure.
Broad Use Cases and Public Consultation Open Until July 18
If implemented, the system could be used by individuals, businesses, government agencies, public institutions, and even connected devices and industrial equipment. The proposal also highlights the potential for broader integration across sectors through standardized digital identity mechanisms.
The public consultation period will remain open until July 18, 2026. Feedback collected during this period will help shape the final regulations as China continues to explore the role of blockchain technology in building next-generation digital identity infrastructure and online trust systems.
