Chinese Government Backs $ 1.6 Milion Dollars For Blockchain

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The Chinese government has reportedly donated funds for the development of Blockchain adoption of $ 1.6 billion. This is quite ironic, given China still considers crypto currency as a threat. In fact, the asset is one of Blockchain-based technology is the most phenomenal and desirable.

In the inauguration of Blockchain Industrial Park in Hangzhou, a program called Xiong'An Global Blockchain Innovation Fund was launched to fund various Blockchain based startups. The program provides $ 1.6 billion, of which 30% is the result of government contributions.

Reported from Sohu media, the Hangzhou government has decided to invest more than $ 400 million in the funding program initiated by the Tunlan Investment. Hangzhou itself is a developed city in China that is known for its openness to all sorts of innovations. The giant Alibaba company is also based in the city. Meanwhile, Tunlan Investment is a venture capital company that focuses on startup development and Blockchain-based projects.

Tunlan Investment's cooperation with the Chinese government has also attracted other business and economic leaders. One interested businessman is Zhenfund's founder, Xu Xiaoping, who has also invested in content distribution platforms Ethereum, Steem and Lino.

Crypto Threat Currency, Future Blockchain Technology

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Prior to this, the Chinese government imposed a full resolution on all sorts of trading and investment of crypto currency, also asked local exchanges to move abroad after blocking their services. This ban resulted in Huobi and OKCoin being forced to change their name to Huobi Pro and OKEx. They are also forced to move their business to Hong Kong.

The Chinese government's new initiative to fund large-scale Blockchain projects is not quite in line with its views on crypto, since crypto itself is a Blockchain-based technology. The Chinese government is keenly hostile to crypto, even assuming crypto assets such as Bitcoin and Ethereum as a threat to China's central bank and financial system.

Researcher of the People's Bank of China (PBoC), Huang Zhen explains, "Sovereign states are still fundamental players in global politics and embrace the characteristics of the world's financial system Crypto and other virtual currencies seek to challenge the sovereign state's right to issue currency. "

"What is really needed is currency digitization, and even China has a clear understanding of the form of digital money and is actively involved in relevant work, and has established a research group and digital money research institute to explore the digitalization of state money."

Although the Chinese government considers the crypto currency as a threat to its financial and monetary system. They continue to lead in efforts to advance the local Blockchain project. On several occasions, the Chinese Government also stressed that Blockchain technology has the potential to transform the global financial ecosystem.

In addition to participating in the billion-dollar Blockchain investment project, China is also the most active country in the world that filed patents on Blockchain-based technologies. According to data compiled by Thomson Reuters, patent applications for Blockchain applications have tripled by 2017. Of the 406 submissions cases, 225 are from China. Panda country even beat the United States and Australia who have a policy 'more open'.

Source News :https://www.coindesk.com/1-billion-blockchain-fund-launches-with-chinese-government-backing/

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