The fact that China has always been keen on Blockchain technology is world-known. The Asian country has the largest number of Blockchain patents in the world beating global economic giants such as the US and Japan. In addition to that, the Chinese government has recently sanctioned another $1.6 billion to back more Blockchain based projects.
On April 9th, a Chinese publication reported that the Hangzhou government has decided to invest around $400 billion in a venture capital firm known as Tunlan Investment to facilitate the growth of Blockchain startups and projects. Tunlan Investment and the Chinese Government jointly took the initiative to launch a BlockChain Industrial Park in Hangzhou city.
Overall, $1.6 billion is estimated to be spent on the initiative, out of which 30% will be funded by the government. The project has attracted eye-balls from investors like Xu Xiaoping, who has already put in money on Ethereum based content distribution platforms-Steemit and Lino.
The Contradiction: No to Crypto, Yes to BlockChain
In September 2017, the Chinese government announced a complete ban on cryptocurrency trading and investment. Chinese exchanges were asked to move out of the country and their services were seized. Two of the largest crypto exchanges in China, Huboi, and OKCoin shifted base to Hongkong post rebranding themselves as Huobi Pro and OKKEx respectively.
The exchanges flourished in the South Korean market, a market which is rapidly growing in the last six months. Chinese Government had banned cryptocurrency entirely, and also added ‘Great Wall’ firewall to stop its citizens from accessing cryptocurrency platforms. While imposing the ban on cryptocurrency, the government made a statement that it considers cryptocurrencies as a threat to its economy and current financial system.
However, when it comes to Blockchain, the technology behind Bitcoin and Altcoins, the Chinese Government has a positive attitude. On several occasions, the government has mentioned that Blockchain as a technology has the potential to disrupt the global financial structure. In the last year, the authorities have helped businesses to grow from scratch in the blockchain sphere. As a result, China has about 400-Blockchain related patents in its pockets.
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