Between January and June 2020, reports have it that more than 10,000 new blockchain-related firms have sprung into existence in China. This is amidst the global pandemic the world has been dealing with.
Coronavirus became a global issue since early in the year with its adverse effect on the economy worldwide. Recall that the global pandemic COVID-19 virus originated from a province in China. Hence, China remains at the centre of the economic backlash countries are facing.
However, it has not deterred the Asian country from developing its blockchain sector with this many new startups coming into existence.
Blockchain and crypto analytic platform Long Hash that monitor activities of blockchain firms in China explained that the number of new blockchain companies established in China in 2020 is on track to surpass that of 2019.
The boom in the number of blockchain firms in China remains a good development for China as many of the existing blockchain firms are out of the market already.
Out of the total 91,373 registered blockchain companies only around 30,700 currently remain in operation. The other 61,000 lost their legal status or had their license revoked.
Many of these blockchain firms, however, are present in Southern China’s Guangdong Province. It houses the burgeoning tech hub city of Shenzhen. Over 26,000 Chinese blockchain firms operates in Shenzhen.
The next location for most of the blockchain firms is Xinjiang Province. Primarily this is because coal is abundant and energy for cryptocurrency mining is cheap in the area. More than 5,000 blockchain firms operate from Xinjiang.
Chinese government throws weight behind blockchain
Last year, China’s President Xi Jinping declared to be an admirer of blockchain extolling the tech. He called for a national strategy supporting the research, development, and investment of blockchain. Xi endorsement of blockchain led to several others declaring interest in the technology in various sectors.
More recently, the country announced plans for a blockchain-based governance system in the country’s capital Beijing. They projected that firms would invest $2.7 billion into blockchain technology by 2023. Reported by the International Data Corporation the forecast from all indications seems to be true.
In addition, China’s Ministry of Human Resources and Social Security added blockchain jobs to its official list of jobs. The ministry added other projects like Blockchain Service Network linking companies to national blockchain efforts.
The surge of blockchain companies in the country signals growing interest in the field.