China has maintained a stringent stance on the use of cryptocurrencies for a long time, from attempting to outlaw cryptocurrency mining to regulating blockchain businesses, banning local exchanges and fundraising events and even going as far as banning WeChat merchants from crypto payments.
Despite the restrictive stance of China, the country has been at the forefront of blockchain development. It may interest you to know that China has the most blockchain patents in the world. There have also been signals that the Chinese Central Bank may convert the Yuan into a cryptocurrency.
As part of efforts to promote blockchain businesses and foster the development of blockchain in the Chinese state of Fuzhou, the state will be offering rent subsidies and cash rewards to blockchain-based businesses.
The move was reported by the state-run People’s Daily news site, stating that the state has mapped out a three-fold plan to reward blockchain businesses.
First, blockchain institutions in the Fuzhou Software Park and Southeast Data Industry Park will receive rent subsidies of up to 600,000 yuan every year for a period of 3 years. Businesses registered with the required government authorities will also receive a one-time subsidy of 500,000 yuan, 300,000 yuan and 100,000 yuan, for state, provincial and municipal regions, respectively.
Secondly, local businesses are encouraged to explore blockchain solutions and build useful applications. Projects that demonstrate their usefulness to the state will receive a rebate of 20% of their construction funds. Winning projects at national and provincial levels will each receive rewards of 600,000 yuan and 300,000 yuan, respectively.
The final category of rewards targets firms that build industrial blockchain platforms such as research centers and technology labs. They could receive a one-time amount of up to 2 million yuan if they are recognized by the Chinese authorities. There are also rewards for contributing to high-level meetings. These rewards range from 200,000 to 1 million yuan.
Considering the fact that China has the highest number of blockchain patents in the world and the number of large corporations such as Alibaba and JD.com entering the blockchain space, it may appear that the country is set to take the world by surprise.