Funding Worth $1 Billion Launched For Chinese Developing Blockchain Enterprise

BTC Wires: In recent times, governments of several emerging economies have started to take initiatives towards the development of the state of blockchain enterprise. More recent news confirms that China has also joined the wave by receiving over $1 billion worth of investment capital.

The announcement of the $1 billion investment project came from the government officials of the Jiangbel new area in Nanjing city. According to the latest inputs, the project will be funded through a public-private partnership.

Yuandao Capital and the Jolmo investment management are the two partners involved in the project. Yuandao Capital is a fund launched by Yuan Dao, chairman of blockchain industrial alliance, established by top Chinese academic institutions. On the other hand, the Jolmo investment management is a publicly listed venture capital firm based in Nanjing. It is interesting to note that the Nanjing government will contribute 30% of the amount as a guiding fund. The remaining 70% will be pulled in from the private sector.

The funds will be distributed in the following manner- thirty per cent of the funds will be used for the development of early-stage blockchain startups, as well as innovation projects that are undertaken by academic institutions in China; and 40% will be provided to traditional industrial companies that are seeking to adopt blockchain technology. The remaining portion of the funds will be used discreetly in several upcoming cryptocurrency projects.

According to many other reports, the municipal government of two of these Chinese cities namely Hangzhou and Shenzhen have also given into the wave of blockchain development with blockchain dedicated funds of $ 1.6 billion and $80 million, respectively.

Nanjing’s plan can also be considered as an after effect of support voiced for the blockchain projects from the president Xi Jinping and the state council. Addressing a group of scientist in May earlier this year, Xi reclaimed endorsed blockchain as an economic breakthrough.