China's Guangzhou government to subsidize local blockchain projects with $150M

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The government of Guangzhou, a province in southern China, announced that it will launch a $150 million subsidy fund to aid the development of local blockchain projects.

China takes concrete steps to encourage blockchain development.

Following China's President Xi Jinping's public endorsement of blockchain technology, the country ramped up its effort to become the next hub for blockchain development.

The latest big step undertaken in the country was the launch of a 1 billion yuan subsidy fund focus solely on the blockchain.

According to a report from Caijing, a Beijing-based media outlet, the government of Guangzhou announced the launch of the subsidy aimed at "Outstanding blockchain projects." A portion of the 1 billion yuan fund, which is around $142 million, will be used to invest in "Blockchain-related" companies, local media reported.

While more details about the exact allocation of the funds are yet to be released, the official government announcement explained that it plans on focusing on two blockchain projects per year.

Up to 20 blockchain service companies will be able to receive $100,000-grants, while companies building public service dApps will be eligible to receive $1.5 million in funding.

While this was touted as a hugely significant development for blockchain technology in general, it's worth noting that neither the new law passed in China nor the newly launched Guangzhou fund will bring about a crypto revolution in China.

The government of Guangzhou made sure to clarify what constitutes a "Public blockchain" in an Oct. 28 document, explaining that any trustworthy network without a centralized node could be considered a public blockchain.

Official government documents also specify that they plan on subsidizing only public blockchains "Without a token," but no further details about this category were given.

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