China’s embrace of blockchain technology continues to grow, as both the private sector and the government continue investing blockchain-backed startups. This has resulted in a surge of new companies, setting a record for 2020 with over 10,000 firms already registered.
New data released by LongHash through their twitter account showed that it has already added more than 10,000 new blockchain-based startups for the year. LongHash indicated that the rate of new startups registration was pace to surpass the total number of blockchain-related companies that were registered in 2019.
Rise of blockchain-backed startups
The rise of blockchain-backed startups in China comes amidst the global coronavirus pandemic that has decimated major economies and highlighted China’s determination to fight against all odds to be a leader in the digital sector.
To dominate the digital era, newly established blockchain companies have found support from the government through funding and legislation. President Xi said late last year that China should be open to blockchain technology, and showed signs that his government was in full support of the new industry.
The total number of blockchain firms registered in China is 84,410 since the blockchain industry became mainstream in the country. The report shows that the highest number of firms are located in Guangdong Province in Southeast China, where it is estimated that there about 25,371 blockchain firms in the region. At second place is the Yunnan Province with an estimated 2,174 blockchain companies.
The blockchain sector is expected to continue its growth in the country, with reports estimating that over $2 billion will have been spent in the industry as investment by the government by 2023. China has also shown willingness to allow large tech companies such as Baidu and Walmart to open their own blockchain-backed firms in the country, which will only contribute to further growth.