The Chinese government is looking to subsidize blockchain projects, and the city of Guangzhou is leading the charge. The local government announced a fund of 1B renminbi ($150M USD) to bankroll “outstanding blockchain projects.”
The positive news from China just continues to accumulate as a major locality in the country announces a blockchain-dedicated fund.
Guangzhou Will Fund Promising Blockchain Projects
Guangzhou will be putting aside funds for a “blockchain subsidy” that will be awarded to promising projects.
Reporter Dovey Wan (@DoveyWan) tweeted about the story earlier today and believes that other local governments will follow. In short, the blockchain industry in China will soon be receiving major subsidies to spur its development. The news first appeared in the Chinese financial news outlet Caijing.
BREAKING
Local Guangzhou gov just announced a 10B RMB (~$150M USD) government funding dedicated in “blockchain subsidy” for “outstanding blockchain projects”
More details below
I believe all other local govs will follow, overall capital subsidy can be massive
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 30, 2019
According to Wan, Guangzhou’s plan is to sponsor 2 blockchain projects every year. Some money will also be put aside from university courses. The funds will be spread out between public chain projects (those without tokens), dApps that help the public good, and grants for various blockchain service companies.
Other governments are expected to jump in on the blockchain craze and competition is expected. The end goal is to optimize innovation, and local governments will be actively competing for who can impress the central government and the Chinese CCP most.
Blockchain Mania in China Continues
Ever since President Xi’s endorsement of blockchain technology, the craze over the emerging technology has not stalled. As BeInCrypto previously reported, calling blockchain a ‘scam’ is now completely banned in China. Universities offering courses on the technology appeared virtually overnight as searches for ‘blockchain’ exploded overnight. The end result has been a rise of Chinese cryptocurrencies across the board, despite none of them being mentioned by the government.
Now, with local governments doubling-down on blockchain to impress the central government and President Xi, we could start to see blockchain mania in the country accelerate. The optimism in China right now could signal a new phase in the history of cryptocurrencies, despite justified uneasiness over its authoritarian state.
Images are courtesy of Twitter, Shutterstock.
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