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Chinese Guangzhou Government Unveils $140 Million Blockchain Subsidy Fund

The Guangzhou government has announced a $140 million subsidy fund to encourage the development of blockchain initiatives.

According to a tweet of Dovey Wan, the Co-founder and a Senior Executive at Primitive Ventures, a crypto investment holding firm, the local authorities are reportedly planning to spend 1 billion yuan ($141 million) to selectively sponsor two blockchain-related projects per year.


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

On October 30, it has been reported by Caijing, a Beijing-based Media Outlet, that Dovey Wan emphasized that the government is specifically planning to support two types of blockchain-related projects:  federated chain projects, and “no-coin” public chains. 

Likewise, Wan elaborated that the announcement defines a public chain as a “public chain without a token,” expressing doubts if such a type of public chain exists.

So, according to Caijing, the maximum size of a blockchain subsidy for public chain projects will account for 10 million yuan ($1.4 million), while federated chain initiatives will be granted up to 3 million yuan ($420,000). 

Moreover, Wan added that 20 blockchain service companies will be chosen annually for granting, while a significant amount of funding will be spent on industry-related educational programs at universities.


the subsidy level is public chain (without token) up to $1.5M, federated chain up to $500k, 20 blockchain service companies each up to a few hundred k, dapp dedicated in public service each up to 1.5M, and there will be tons of money for local universities' training — Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 30, 2019

According to Caijing, the Government also plans to set up a nationwide blockchain innovation and entrepreneurship contest with a total fund of 10 million yuan ($1.4 million).

Likewise, Wan expressed confidence that the recently announced plans will trigger more local governments to adopt similar blockchain subsidies in the near future.

<img src="https://i0.wp.com/www.cryptonewspoint.com/wp-content/uploads/2019/10/dovey-wan__01132.jpeg?fit=1024%2C1024&amp;ssl=1" alt="" class="wp-image-4274 lazyload" width="355" height="355" />

Dovey Wan

She wrote:

“This is HUGE for talent attraction and retention, all other govs will follow and compete”  Dovey Wan

China is pushing blockchain adoption

The news comes amidst the apparently increasing attention of China towards blockchain.

On October 25, China’s President Xi Jinping urged the country to accelerate the adoption of blockchain technology as a key direction to innovation. 

Likewise, on October 27, China Electronic Information Industry Development (CCID) published a study revealing that there are over 700 blockchain enterprises in the country. On October 28, China saw a surge of blockchain-related searches on WeChat, with the number of related searches skyrocketing millions in just a couple days.

Thus, on October 29, Abacus News, China-focused publication, reported on a new blockchain-based app facilitating political data records by the members of China’s Communist Party.

Source: economy.caijing.com | abacusnews.com | cointelegraph.com

 
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