In China, blockchain is the new black. And the private sector doesn’t want to miss out on the new trend. 1911 Group Co.Ltd. is the latest to announce its support for the technology.
Another big yes to blockchain. Recently, the Chinese media advised about the launch of a $14 million fund to support the crypto industry. The initiative belongs to 1911 Group Co.Ltd. The company focuses on technology and resources for blockchain’s application to digital finance. It also encourages digital asset trading, supply chain, and cybersecurity.
Founder of 1911 Group Yu Zhifei said, “1911 Group have been focusing on new technology industry investment. 1911 Group has decided to cofound the 1911 Blockchain Fund with blockchain experts, famous investors, and entrepreneurs in response to the government’s call. The new fund aims to promote the industrial application and innovation of blockchain technology. It will also promote national economic and social development.”
Since President Xi’s endorsement of blockchain technology, a massive wave of support has engulfed the country. More than 10 provinces have organized blockchain funds. For now, they have accumulated nearly $6 million.
And the local Guangzhou government is ready to dedicate $150M to DLT’s development.
Crypto future in China
Xi Jinping’s endorsement instantly pumped Bitcoin’s price. It went up by 40%, and at the peak, it cost over $ 10.5 thousand.
Xi said, “We must take blockchain as an important breakthrough for independent innovation of core technologies.”
4/ President Xi: We must take blockchain as an important breakthrough for independent innovation of core technologies, clarify the main directions, increase investment, focus on a number of key technologies, and accelerate the development of blockchain and industrial innovation
— cnLedger (@cnLedger) October 25, 2019
Besides, it is clear that the central bank of China will soon launch its digital currency DCEP.
As soon as DCEP is fully launched, tighter monitoring of assets may follow so that there is no opposition to the national digital currency.
Although China is now open to the blockchain, it is still wary of other cryptocurrencies.Hence, a dedicated law enforcement agency will be controlling the Chinese DLT space, so that no other crypto assets penetrate the country.