What Makes Nanjing to Announce $1.48 Billion Fund for Blockchain Technology?

What Makes Nanjing to Announce $1.48 Billion Fund for Blockchain Technology?

China’s Jiangsu province capital city, Nanjing, disclosed about the launch of a gargantuan fund worth about $1.48 billion. The objective is to invest in blockchain associated platforms to push the current projects of the new age technology within the country. An announcement came a few days back during the Industrial Public Chain Summit (IPCS) held for the first time. This demonstrated that the country is showing enough interest in the technology though it might have banned digital currencies.

Big Boost

As far as China is concerned, the news is undoubtedly a big boost for the industry focused on the blockchain platform. Importantly, Nanjing has identified Zhongguancun Blockchain Industry Alliance for partnering in the investments to be made. The alliance consists of not only firms associated with blockchain but also the state-sponsored research restitutes, btcmanager.com reported. The IPCS has attracted people from different sectors such as officials from the government side and Communist Party of China’s Nanjing deputy secretary, Luo Qun. That suggested the amount of interest the technology has generated in the country.

The event was probably one of the key aspects since the country has not shown such importance in the past either for blockchain or for the crypto currency-associated economy. For instance, there was tough resistance on trading of digital currency last year when the country has slapped an official ban on not only virtual asset like bitcoin or Ethereum trading but also on initial coin offerings (ICOs). However, the conditions have changed in the current year as the industry could see a lenient stance from authorities.

For instance, the Chinese President, Xi Jinping, had supported the technology last month when he termed it as having ‘breakthrough applications.’ This apart, the IT ministry too joined the endorser list. This was evident when its deputy director wanted adoption of it on an industrial scale in every model of the economy in the country. Such change of heart was welcomed by supporters of the technology since the toning down could also lead to the withdrawal of a ban on ICO and trading on cryptos.

As far as the investment is concerned, the fund’s objective is to offer an initial momentum from the financial side to a universal decentralized asset platform (UDAP). On top of all these things, Nanjing could become an attractive destination as far as the startups of blockchain platform are concerned. That is because of offering a better ecosystem to create their businesses.

Cooperation with Korea

Interestingly, chairman of Global Finance Society, a South Korea research institute, Oh Kap-Soo, has called for cooperation between the two countries. This will help to tap the potential of the blockchain technology citing the wider applicability in different fields like science, real estate, healthcare, and finance.

Currently, China is enjoying a leadership position in the world as far as the number of patents of blockchain technology is concerned. For its part, South Korea has some dynamic digital currency exchanges through Bithumb, Coinlink, and UPbit. In any case, it is a key development for the enthusiasts of the technology in China.

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