China’s Hainan FTZ to Support Blockchain Industry

The Hainan Economic Pilot Zone is committed to strengthening the role blockchain tech plays in the local economy. Blockchain Industry will continue to see significant investments from China’s Hainan Free Trade Zone (FTZ) with new funds to encourage local businesses.

05 December, 2019 | AtoZ Markets – Hainan Province in southern China on Wednesday issued a series of measures to speed up the support of the blockchain industry. It is according to a press conference held in the provincial capital of Haikou.

China’s Hainan Pilot Free Trade Zone

These measures made public by China’s first pilot zone in the Hainan Pilot Free Trade Zone. These will support the blockchain industry through talent culture, technology applications, social investment, and other aspects.

Blockchain technology will use efforts in multiple areas such as housing, health care, tourism, and trade. However, it will with a special fund of 1 billion yuan (about US $ 142 million) set up to finance companies in the blockchain. The Department of Industry and Information Technology launched the blockchain pilot zone in October 2018. Besides, it is based in the Hainan Resort Software Community (RSC), an Internet industrial park.

This is the first officially authorized blockchain pilot zone in China, said Wang Jing at the press conference. He is head of the department. So far, the pilot zone has hosted over 100 blockchain organizations and companies and is one of the fastest-growing blockchain clusters in the country.

On the same day, the RSC also launched an action plan entitled “Secure, Sharing, Compliance +” (SSC +). That aims to achieve secure and reliable data sharing and digital governance by integrating advanced technologies, including blockchain technology and big data.

It will also help facilitate the construction of the pilot FTZ with the free movement of personnel, goods, capital, and useful data flows. The SSC + has attracted attention abroad. Essentially, the Dubai Blockchain Center signed a strategic cooperation agreement with the Blockchain pilot zone on Wednesday.

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Blockchain Industry in China

The Department of Industry and Information Technology published an implementation plan. That is to help Hainan with the construction of the pilot FTZ and a free trade port with Chinese characteristics. That covers 17 specific areas, including the development of the blockchain industry. Blockchain also continues to be a buzzword in China after the official approval of the technology by the government.

At the same time, the figures for the country’s financial commitment seem to vary. New injections of funds appear regularly. But overall long-term investment forecasts remain relatively cautious. According to the latest estimates, investments in the blockchain may reach $ 2 billion by 2023.

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