China Captured 22% of Blockchain Funding Events in 2019, Deals Are Shifting Eastward
Funding deal activity for crypto and blockchain has been shifting from the U.S. to China, a CB Insights report says.
The U.S. and China have dominated funding for blockchain projects since 2015, making up nearly 70% of all funding offered over the past four years.
While both countries remain the dominancy, deal activity of the crypto and blockchain sector has been shifting eastward. According to the CB Insights Blockchain 2020 Report, 51% of blockchain funding deals went to US-based companies in 2016, with only 2% going to those based in China. While four years later in 2019, the US’ share of deals fell to 31% and China’s rose to 22%.
Earlier the year, Rhino Data, a China-based data-driven blockchain investment platform, revealed that 245 investment and financing deals happened in China in 2019, with a total of around $3.5 billion invested.
It seems that the country’s president Xi Jinping’s blockchain endorsement last October has greatly fueled capitals’ interest in the emerging industry and help boom China’s blockchain sector.
Despite the coronavirus outbreak that has been currently ravaging the whole world, China is managing to turn the crisis into an opportunity in terms of digital transformation.
The country has since turned to the use of blockchain technology to trace the supply of virus prevention materials, manage medical data and in getting public opinion. It is reported that about 20 blockchain-based applications have been designed to address various problems that pertain to the virus spread in February alone.
On the other hand, China’s central bank has been accelerating its central bank digital currency (CBDC) plan amid the coronavirus crisis. According to insiders, the digital currency is seen as the most convenient way for the PBoC to translate zero and negative interest rate policy to commercial banks – a measure forced by the growing coronavirus pandemic.
The CB Insights report also pointed out that China is taking the lead in the CBDC project with more than 80 patents related to CBDC already filed and expects to launch it in 2020.