The blockchain industry has increased over the past ten years since its inception. In October last year, Chinese President Xi Jinping endorsed a new technology that encouraged innovators to incorporate it into different sectors of the economy. The latest reports reveal that China’s blockchain spending in the fields of finance and investment transactions has dropped by more than 40% in 2019.
In 2019, China totally had 245 investment and finance transactions, nearly 60% less than the previous year. The total amount spent on blockchain investment transactions accounted for 24.4 billion Chinese yuan (3.6 billion USD). Xinhua Finance officially released on January 15, the study said that number was down 40.8% in 2019 compared to 2018.
However, despite this decrease from the previous year, the number of agreements has increased significantly compared to 2017. This year only 168 investment agreements were resolved, while in 2019, there were more than 240 blockchain-related investments.
Xinhua has also reported on the types of investments made. As a result, 43.3% of investments made in 2019 have been made through funding rounds such as Series A.
Regarding the activities of the local blockchain community, it can be said that in the first half of the year, this community was inactive. At the same time, in the last six months of 2019, the number of mergers and acquisitions has increased significantly, probably boosted by the announcement of the digital yuan, china’s national crypto. In addition, up to 292 organizations have participated in these investments. So far, Shenzhen, Beijing, and Hangzhou have attracted the most important blockchain projects.
China has become a very active player in the blockchain field
China has strengthened its blockchain expertise. The country did it quite thoroughly after President Jinping asked the country to speed up blockchain adoption last October. The dramatic decline in blockchain spending in the country is somewhat unexpected.
Xinhua cited a study in late 2019 by US market intelligence firm IDC. That study predicts that the nation’s spending on blockchain technology will exceed $ 2 billion by 2023.
The Chinese government has also made progress in developing a government-backed digital currency, the digital yuan. The Chinese people have been studying CBDC for more than five years. It sped up development after Facebook announced its Libra project. The bank completed the first pilot in the real world the digital Yuan in December 2019.
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