Specifically, the company has stated that more than 10,000 blockchain firms have been set up between January and July. The report also mentions that the number of blockchain focused firms setup this year in China is on course to eclipse 2017’s overall figure.
In fact, LongHash believes that 2018 could see the figure surpass even the record 18,500 firms established in 2018.
But there are some concerns. Even though 84,410 blockchain focused companies have been established, only 29,340 are currently functioning.
The Guangdong Province in Southeast China boasts of having the maximum number of blockchain firms with Yunnan Province in the Southwest taking the next place.
Nevertheless, a major portion of those blockchain firms have been setup with paltry capital.
Particularly, most of those registered firms have been established with a capital of mere 5,000 yuan (~$717). Furthermore, only a small portion of those firms have been set up with a paid up capital of 50,000 yuan (~7,175).
#COVID19 hasn’t stopped China’s blockchain boom. 10,000+ new blockchain companies have been established in the first 7 months of 2020. Number of new companies on track to surpass those established in 2019. Chart ? pic.twitter.com/yP6XSeU8bl
— LongHash (@longhashdata) August 8, 2020
The Chinese government continues to adopt blockchain technology at various levels of administration to enhance efficiency in government services.
China’s central bank, the People’s Bank of China, has also been awarded $4.70 million in funding for its blockchain trade platform, payable over a period of three years.
The government has also endorsed 224 blockchain related ventures from top tech firms including Walmart, Baidu and JD.