China has announced the creation of a blockchain development zone in Hainan. The news was officially reported by the party mouthpiece newspaper Xinhua on Dec. 5th. A pledge of 1 Bilion yuan (~$140M) has been made. This comes after the announcement for China’s own cryptocurrency, the digital RMB DCEP, earlier this year.
This doesn’t come as a surprise for people following cryptocurrencies and China, since more than a year ago Xinhua already reported a pilot zone in Hainan. Hainan has been an economic special zone since the early 80s.
The goal is to fund research in blockchain an its applications and attract talents. Creating a zone of productive research allows the government to put all the talents in one place, which we know is very stimulative as we’ve seen from the Silicon Valley successes. It also allows the government to keep track of the projects, in particular as scams and ponzis are multiplying in China, with the Plus Token fiasco and its leaders’ arrest in May-June 2019 after stealing more than 80000 bitcoin (over $600M).
Previously, Hangzhou, not far from Shanghai, and location of the famous 2016 G20, was a hub for blockchain research in China.