Chinese Guangdong Gov’t Approves $140M Blockchain Subsidy, Half the Chinese Blockchain Enterprises Choose Guangdong
A city in Guangdong, a province in north China unveils $140M Blockchain Subsidy fund to support the development of blockchain initiatives.
Guangdong government plans to subsidize “no-coin” public chain projects with as much as $1.4 million, according to a local economic media reported on Oct. 30.
Apart from “no-coin” public chain projects, consortium blockchain projects are also supported by the subsidy fund. “No-coin” public chain referred by Guangdong government was defined as public chain without token.
Guangdong government’s blockchain fund will support the research of core technologies to provide safe, transparent and reliable technical support for the development of digital economy. The city will also focus on cultivating 1-3 leading blockchain enterprise every year, and give priority to provide application scenarios in government affairs, public services.
Guangdong province has long been the leader of blockchain entrepreneurship in China, as half the blockchain enterprises choose to settle in. So 18601 blockchain enterprises were located in Guangdong province, accounting for 60.61% of China’s total. Compared to 345 in Beijing and 82 in Shanghai, Guangzhou leads the way among first-tier cities.
Large cities like Guangzhou is more attractive to blockchain technology companies as it has advantages in talents, business and technology accumulation. While province like Sichuan, Xinjiang and other places are more attractive to crypto mining industry due to their abundant electric power resources and low electric charges.
China’s authority has always provided financial support for blockchain entrepreneurship. Last year, a $1.6 billion (10 billion CNY) government-backed blockchain fund, dubbed Xiong’An Global Blockchain Innovation Fund, was launched Monday in Hangzhou, a Chinese city noted for its vigorous support for the fintech industry and which is home to the e-commerce giant Alibaba. Investment guided by the Chinese government in blockchain technology has stood at over 40 billion yuan (roughly $5.82 billion) in 2018 alone.
Since China clearly proposes to vigorously develop the blockchain industry, the follow-up regulatory rules must be launched soon. As China’s President Xi Jinping urged the country to accelerate the adoption of blockchain tech as a key direction to innovation, the blockchain project combined with the real economy will flourish, while armchair strategists will be eliminated, and the crypto space in China will undergo a thorough reshuffle.