Chinese Government Backs $1.6 Billion Blockchain Fund
The government of China is reportedly backing a newly launched blockchain fund that is worth $1.6 billion which seeks to invest in creative startups.
The new blockchain fund is called The Xiong'An Global Blockchain Innovation Fund and it was unveiled on Monday during the opening of a new Blockchain Industrial Park located inHangzhou. The latter is known for being highly supportive of innovation and the fact that it is home to some of the country’s major companies such as Alibaba. The support that the new blockchain fund has received from China’s government highlights the fact that the country’s authorities acknowledge the advantages that blockchain technology has to offer. This is despite its aggressive stand against cryptocurrencies.
The new fund was reportedly launched by a venture capital firm called Tunlan Investment which is based in Hangzhou. Sources also revealed that the fund expects Hangzhou city’s government to provide more than $400 million which will be used by the fund to invest in blockchain startups that show a lot of promise. The industrial park will be used as an incubation center to support the blockchain projects.
China’s Bitcoin billionaire Li Xiaolai has been appointed to manage the fund while Zhenfund founder Xu Xiaoping has been appointed as an advisor.Blockchain is the same technology used to support the existence of cryptocurrency. This technology is often described as a decentralized ledger that cannot be tampered with and offers a high level of data security. Meanwhile, China has been aggressively opposing cryptocurrency-related activities such as mining and cryptocurrency trading. It is one of the countries that have also kicked out crypto exchanges, demonstrating utter lack of faith in the cryptocurrency market.
Despite siding against cryptocurrency, the country acknowledges the potential that blockchain technology has to offer. It has thus been quick to welcome any blockchain-related developments as part of its mission to always be ahead of the curve when it comes to the adoption of new technologies. Decentralized digital ledger technology is believed to be an ideal solution for running more secure and efficient systems that might benefit a wide range of industries.
China has also been very forward-minded when it comes to supporting startups especially those that might be potential game changers through new technology, products, and services. The new blockchain fund is thus expected to play a critical role in supporting blockchainstartups that may offer solutions that may be used to solve existing problems or bring more efficiency in the future.