The government of Guangzhou, the capital and most populous city of the Chinese province of Guangdong, has reportedly launched a $141 million grant fund to support the further development of several local blockchain projects.
The Guangzhou authorities intend to allocate around 1 billion yuan (the US $ 141 million) annually to develop two major blockchain initiatives. This emerges from a recently published tweet by Dovey Wan, partner of Primitive Ventures, an investment company for digital assets.
“No-coin” public chains
Wan referred to a report by Chinese news broadcaster Caijing on October 30, stating that the country's government intended to support two specific types of initiatives based on DLT (Distributed Ledger Technology) technology, including collaborative chain projects and "no- Coin "public blockchains.
Wan said Chinese authorities consider a " public chain without a token" to be a public blockchain, while the government pointed out that these types of DLT platforms may not exist or that there may not be too many of them.
The maximum grant for public blockchain projects is 10 million yuan (about $ 1.4 million). Federated blockchain projects may receive a maximum of 3 million yuan (approximately $ 420,000) in funding.
20 blockchain-related service providers are selected for the grants each year. A relatively large part of the funds is used for blockchain education initiatives at local universities, according to Wan.
More provinces to join
The Chinese government is also preparing to launch a nationwide DLT innovation and entrepreneurship competition, the total funding of which is to be limited to 10 million yuan.
Wan expects the recent developments in Guangzhou to lead to the adoption of further blockchain funding programs in other Chinese provinces.
“This is HUGE for talent attraction and retention, all other [local] govt.s will follow and compete”
On October 25, Chinese President Xi Jinping asked the country's citizens to take advantage of blockchain technology.
China Electronic Information Industry Development (CCID) recently published a study that found that there are more than 700 blockchain companies in China.
On October 28, China saw a dramatic increase in the search for blockchain-related issues on WeChat social media network.