A local government in China is dropping approximately $150 Million to fund outstanding blockchain project.
The local government says it is launching a “blockchain subsidy” for projects with unmatched potential in the region.
While there is not much about the funding, Dovey Wan, a Chinese-resident cryptocurrency enthusiast broke the news.
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
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 30, 2019
She said: “Local Guangzhou gov just announced a 10B RMB (~$150M USD) government funding dedicated in “blockchain subsidy” for “outstanding blockchain projects” More details below I believe all other local govs will follow, overall capital subsidy can be massive”.
According to her, the local government is to sponsor two projects annually. The projects to be funded can either be “public chain or federated chain”.
However, the funding is to be centered on public chain without token.
She said, public chain receives funding up to $1.5M, while the subsidy for federated chain is upto $500, 000.
Guangzhou has been working on promoting blockchain technology since. The Local Government established its maiden blockchain industry association in Huangpu district in mid-2017.
The blockchain organization is being monitored by the municipal government of the Huangpu and Guangzhou Development District.
The association has members from blockchain related projects with Guangzhou Research Institute of O-M-E Technology as one of its key members.
As at that time, the government says it will help develop four outstanding public service platforms while also planning to set up blockchain industrial park in Guangzhou development district. At the launch of the organization, IBM Chief Scientist, Huang Jin, spoke on the importance of blockchain technology.
China is making moves to outpace US in the adoption of blockchain technology. The country’s Central Bank is closer to launching its digital currency than any other country in the world.
Despite Support for Blockchain China Cautions on Cryptocurrency
A state-owned new outlet in China has warned investors against speculations around cryptocurrencies, clarifying that the support for blockchain technology should not be mistaken.
As published by Reuter on October 29, The People’s Daily, a state-backed agency urged locals not to confuse Beijing’s support for Blockchain as a support for cryptocurrencies like Bitcoin, which the country already banned.
“Blockchain’s future is here but we must remain rational.”
The admonition from the new agency under the control of the ruling part, the Communist Party of China, was birthed by the speculations that Bitcoin’s latest price rise is in connection to President President Xi Jinping statement on Blockchain.
“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies,” The People’s Daily added.
