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Chinese City Launches $1 Billion Blockchain Fund

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There is no doubt that the holders of China’s purse strings are willing to put a lot of money into blockchain development at the moment. The latest municipal government to get behind the technological revolution is in the Nanjing area – called the Jianbing New Area. According to the government of Nanjing:

With a planning area of 788 square kilometers, it covers Pukou district, Luhe district and Baguazhou sub-district of Qixia district. It encompasses a group of industrial parks such as Nanjing New and High Technology Industry Development Zone, Nanjing Cross-Strait Technology Industry Park, Nanjing Chemical Industrial Park, and two ports along with Yangtze River, namely Xiba and Qiba. As of 2014, Nanjing Jiangbei New Area had a population of 1.3 million, with its GDP reaching 143.5 billion yuan and budgetary revenues running at 16.3 billion yuan. The Area is aimed at pushing forward the development of the Yangtze River Delta region, thus creating a new growth engine in China’s east coast regions.

The news coming from the area is that this local government have launched a $1.4 billion fund (10 billion Yuan) to bolster the local blockchain startup market. And according to another local news agency, quite a large chunk is going to come from the Nanjing government itself [translated from Chinese]:

In the budget of 10 billion, the ratio of government guidance funds to social funds is 3:7. 30% of the plans will be invested in early blockchain technology companies and colleges and universities, 40% will be invested in growth industries that embrace blockchain, and the remaining 30% will be used cautiously.

This latest fund follows another $1 billion + fund in Hangzhou – the Xiong’An Global Blockchain Innovation Fund. With this fund, 40% came from the government itself. The fund was launched back in April. And Shenzhen also launched a fund in April – this one was for half the amount; $800 million, but again, 40% of the funding was reported to have come from the government itself, further proving China’s long-term commitment to blockchain development, despite the current crypto ban in the country. Now, startups in other areas will be hoping that their governments follow suit.

Image Credit: Deposit Photos

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