Chinese City Shenzhen is Supporting a huge Blockchain Investment Fund
Blockchain Investment Fund
China seems to be investing heavily in Blockchain technology. Recently the City of Hangzhou supported a Blockchain investment fund, and now the city government of Shenzhen is following suit by dedicating a blockchain investment fund. The announcement was made on Sunday on the city and was hosted by China Electronic Commerce Association. The fund will be aimed at investing 80 million dollars on Blockchain startups in Shenzhen in its initial phase.
The partnership will be through a public-private partnership where about 32 million dollars of the 80 million will come from angel fund which was launched towards the end of March by the Shenzhen government. The remaining funds will be raised through the private sector.
The total amount in the angel fund is about 800 million dollars which will be invested in startups, and around 4 percent has been allocated to the local blockchain projects. The operation of the fund will be managed by two state-owned firms which will then be supervised by the city government commission will oversee all the state-owned assets. More to that Liu Zhongpu who is a local government official has been appointed to operate as the official advisor to the fund.
Even though the Chinese government banned the trading of Bitcoin and also the raising up of money using ICO’s they are investing heavily in blockchain technology which is seen as the technology of the future. In line with that, the County’s Hangzhou city has also backed the start of Xiong’AN Global Blockchain Innovation Fund. Through the fund, the city has put aside 1.6 billion dollars to invest in Blockchain startups. 30 percent of this money will come from the city government while the rest will be through the private sector.
Many governments and especially financial institutions have invested heavily in the Blockchain technology because it’s safe, fast and secure.