Guangzhou government has announced a $140 million subsidy fund to encourage the development of blockchain initiatives.
The Guangzhou government has announced a $140 million subsidy fund to encourage the development of blockchain initiatives.
The local authorities are reportedly planning to spend 1 billion yuan ($141 million) to selectively sponsor two blockchain-related projects per year, according to a tweet of a senior exec at crypto investment holding firm Primitive Ventures.
“No-coin” public chains
Citing a report by Beijing-based media outlet Caijing on Oct. 30, Primitive Ventures’ co-founder Dovey Wan emphasized that the government is specifically planning to support two types of blockchain-related projects: federated chain projects and “no-coin” public chains.
Wan elaborated that the announcement defines a public chain as a “public chain without token,” expressing doubts if such a type of public chain exists.
According to Caijing, the maximum size of a blockchain subsidy for public chain projects will account for 10 million yuan ($1.4 million), while federated chain initiatives will be granted up to 3 million yuan ($420,000).
Moreover, 20 blockchain service companies will be chosen annually for granting, while a significant amount of funding will be spent on industry-related educational programs at universities, Wan added.
More regions to join
Additionally, the government also plans to set up a nationwide blockchain innovation and entrepreneurship contest with a total fund of 10 million yuan ($1.4 million), according to Caijing.
Wan expressed confidence that the recently announced plans will trigger more local governments to adopt similar blockchain subsidies in the near future. She wrote:
“This is HUGE for talent attraction and retention, all other govs will follow and compete”
China is pushing blockchain adoption
The news comes amidst the apparently increasing attention of China towards blockchain. On Oct. 25, China’s President Xi Jinping urged the country to accelerate the adoption of blockchain tech as a key direction to innovation.
On Oct. 27, China Electronic Information Industry Development (CCID) published a study revealing that there are over 700 blockchain enterprises in the country. On Oct. 28, China saw a surge of blockchain-related searches on WeChat, with the number of related searches skyrocketing millions in just a couple days.
On Oct. 29, China-focused publication Abacus News reported on a new blockchain-based app facilitating political data records by the members of China’s Communist Party.