China takes one more step towards integrating blockchain tech with its real-world economy. The government of the Jiangbei area in Nanjing city announced a plan to launch a $1,4 billion blockchain fund, as reported by the Xinhua News Agency.
“The conference invited China Electronics Chamber of Commerce, China Internet Association, China Small and Medium Enterprises Association, China Computer Society Blockchain Committee, Tsinghua University, Nanjing University, Jiangsu Bank, Nanjing Bank, Nanjing Securities and other industries to pay attention to the industry’s public chain. Enterprises, institutions, experts, and industry insiders participated,” the news agency reported.
The effort comes right after recent reports of municipal governments of Chinese cities such as Hangzhou and Shenzhen launching blockchain-dedicated funds of $1,6 billion and $80 million, respectively.
How will the $1,4 billion fund be split?
The Yuandao Capital is a fund launched by Yuan Dao and the Jolmo Investment Management, a venture capital firm based in Nanjing. The report specifies that the Nanjing government will contribute 30 percent of the total amount as a guiding fund. The remaining 70 percent will come from the private sector.
From the remaining 70 percent, 40 percent will be allocated to traditional industrial companies looking to adopt blockchain tech, and 30 percent for funding various blockchain projects, the report mentioned. The initial guiding fund (30 percent) will be used to support innovations from China’s academic institutions.
The Nanjing city’s plans come at a very good time, as both the State Council and the President of China, Xi Jinping, are fully supporting blockchain development. With this latest development, China has now seen three big blockchain-dedicated funds in the course of a few months.