China will Invest Millions to Fund Blockchain Projects
Recently it was reported by a local news outlet in China that Guangzhou Chinese Officials have announced a new plan to fund outstanding blockchain projects. This new initiative will see 1 billion RMB, worth $150 million, allocated to help build these businesses. For private chains, the threshold will be a maximum of $500,000 and for public chains $1,500,000.
It is no surprise that China is becoming more supportive of blockchain technology after the Chinese President, Xi Jinping spoke out about the advantages that this technology can have, and how China should be leading the way forward in the industry. After his speech, Bitcoin rose 20%, showing signs that cryptocurrency may be able to bounce back from the bearish year it has had.
It should be made clear that the regulations behind this initiative make it so the public chains are independent and are “no-coin” public chains that support the development of the blockchain industry.
Each year, the subsidies will be provided to two projects to build either a public or private blockchain project.
Dovey Wan, founding partner at Primitive Crypto stated her support for the movement by saying:
“I believe all other local govs will follow, overall capital subsidy can be massive.
The plan is to selectively sponsor 2 projects every year, can be either public chain or federated chain projects.
But what’s weird in the announcement is, they define public chain as “public chain without token…” not sure if that type of public chain exist.”
The future of cryptocurrency is now looking bright for China as it has not always been that way.