Chinese Region Hainan to Invest 1 Billion Yuan to Foster Blockchain Development

China’s interest in the blockchain technology continues to grow and the Hainan Free Hainan Free Trade Zone (FTZ) committed to invest 1 billion Yuan to stimulate local businesses.

According to local news outlet Xinhua Net, Hainan’s dedicated economic pilot zone has pledged to foster businesses in the blockchain industry by incentivizing talent and promoting the technology’s implementation in sectors like housing, healthcare, tourism and trade.

Hainan is the first blockchain pilot zone and will be based in the Hainam Resort Software Community. According to Wang Jing, the head of the department, this is also the first pilot to be approved by the local government.

The fostering measures include a fund worth 1 billion yuan, approximately $142 million. The announcement sees Hainan fall in line with various other Chinese provinces which have confirmed financial support for blockchain in recent weeks and months.

In general, the Hainan Free Trade Zone is a pilot economic area established by President Xi Jinping in 2018. The plan set out to make the island a free trade zone by 2020 and eventually turn into a free port by 2025.

Blockchain continues to be a hot topic in China and for Chinese officials with endorsement of technology application. However, the Chinese government remains vigilant on trading activities, iterating their stance that trading needs to be monitored and sanctioned.

In a comprehensive plan to utilize blockchain technology and big data, the government aims to facilitate the development of secure and trusted data sharing and digital governance.

The Hainan zone has seen an influx of blockchain companies, including two major cryptocurrency exchanges in Huobi and OkEX. In total there are over 100 blockchain businesses that joined the Hainan Resort Software Community.

Among the latest funds to come from the local industry was a $140 million injection from OK Group, the parent company of trading platform OKCoin. Prior to that, the government of Guangzhou also said it would inject 1 billion Yuan into the industry.