The Chinese city of Guangzhou will allocate 1 billion yuan to finance blockchain projects

Local authorities in the Chinese city of Guangzhou said they would allocate 1 billion yuan (about $ 142 million) for the development of projects working in the blockchain industry.

The government will create a special fund of 1 billion yuan to accumulate public capital. The creation of this fund is intended to finance innovative projects and equity investments in companies developing blockchain-based solutions. The fund will be organized by state-owned enterprises, which have yet to develop a detailed plan for the issuance of subsidies.

In addition, the Guangzhou authorities published provisions on the implementation of initiatives to promote the development of the latest technology. According to published regulations, Guangzhou deputies will be able to sponsor only 2 companies annually, which provides for strict selection criteria. Companies developing public and federal blockchains can count on financial support, and cryptocurrencies should not be used in them.

Developers of the public chain have the opportunity to receive $ 1.5 million, and up to $ 500,000 is provided for companies developing the federal or city chain. In addition, creators of decentralized applications can also receive financial assistance. In the future, the Guangzhou authorities plan to deepen the implementation of blockchain technology and annually choose 20 institutions that use the blockchain for information or other purposes. Selected companies will also receive a subsidy.

In addition, the Guangzhou City Government will allocate funds for training specialists in the field of advanced technologies at local universities. Such initiatives are aimed at retaining qualified personnel in the country and attracting new employees specializing in blockchain technology.

According to a study by the China Information Technology Development Center (CCID), there are more than 700 blockchain companies in the country, 500 of which receive the necessary funding. Recall that recently the Central Bank of China introduced a new certification system for digital products.