Investment guided by the Chinese government in blockchain technology has stood at over 40 billion yuan (roughly $5.82 billion) in this year alone.

Despite the country’s ban on cryptocurrency trading, China is a strong proponent of the technology underpinning it, in terms of both capital and policy.

In 2018, several blockchain funds, with a scale of $5.82 billion in total, have been initiated by local governments in China to promote the better development of blockchain technology, according to incomplete statistics.

Hangzhou government is the pioneer in embracing blockchain by starting Xiong’An Blockchain 10bln Fund, the earliest and largest blockchain fund by that time in the country.

Cities like Nanjing and Henan also launched 10 billion yuan ($1.5 billion) government-backed fund to support local blockchain projects. Beijing, Shanghai, Shenzhen, Xi’an and Changsha followed to launch large amount of fund in support of blockchain startups.

Government funds accounted for 30 percent of the investment (namely $450 million) in the 10-billion blockchain funds in Hangzhou and Nanjing; while all the 10 billion in Henan is funded by the local government.

In terms of policies, various regions across the country have rolled out favorable policies for the blockchain industry in planning, capital subsidy as well as talents introduction.

Interest in blockchain has gained momentum in China since the country’s president Xi Jinping recognized it as one of the five pillars of a new generation of information technology. Inspired by Xi, China has made it a national interest to invest in the latest technology with blockchain startups spawning all over the nation. Even the country’s central bank steps up to adopt blockchain technology, last month it published an ad looking for blockchain experts.

The nascent industry is taking flight under the directives of the Chinese government. A new blockchain project led by a Chinese Turing Award winner has been under the spotlight these days, which brings more hope and bright to the industry. The ongoing and upcoming blockchain projects, together with the support of the government, will undoubtedly drive massive adoption and create an integrated network of blockchain ecosystem.