In surprising statistics by Xinhua, a Chinese state-run media firm, China recorded a 40% drop in blockchain investments in 2019 compared to 2018. The revelation came a few months after President Xi Jin Ping urged the country to accelerate blockchain efforts in October. China also had 60% fewer deals and ventures in the blockchain space last year.
According to the joint study by Xinhua and Rhino data, a financial data platform, China put in 24.4 billion Chinese Yuan ($3.6 Billion) in blockchain investments in 2019. This sum represents a 40.8% drop from 2018, the report claimed.
On the positive side, China’s blockchain industry has seen an increase in value and the number of deals in the period between 2017-2019. China’s blockchain investments hit all-time high in 2018 with more than 600 deals taking place. 2017 had 168 deals taking place while 2019 witnessed 245 blockchain deals being settled.
The report by Xinhua also went on to reveal the different types of blockchain investments. Of this, the report revealed that 43.3% of investments came from early-stage investments such as series A funding rounds.
The blockchain community also had low activity in the first half of 2019 while the second half saw increased activity with the proportion of strategic investment, mergers, and acquisitions increasing significantly. A total of 292 institutions participated in those investments, with the cities of Beijing, Hangzhou, and Shenzhen having the biggest blockchain projects.
China’s Blockchain Push
China has recently appeared as one of the countries in the world that are putting real money into blockchain technology. Besides supporting blockchain initiatives, the Chinese government has made remarkable progress in developing a digital yuan. The People’s Bank of China put forward its first real-world pilot of the digital currency after five years of research.
China has accelerated its progress with regard to its digital currency after Facebook announced Libra. As reports revealed at the time, China was concerned that if Libra were to succeed, it would give the US dollar more superiority, the very thing that the digital yuan is meant to fight.
Crypto analyst and Author