New $1.6B Worth Chinese Blockchain Fund to Launch

Dubbed Xiong'An Global Blockchain Innovation Fund will be supported by the Hangzhou city government
09 April 2018   496

New fund from China has $ 1.6 bilion to invest in startups; 30% of funds backed by a city government. This is reported by Coindesk.

New initiative named Dubbed Xiong'An Global Blockchain Innovation Fund was annouced at the opening ceremony of a new Blockchain Industrial Park in Hangzhou. This Chinese city is a hot to major companies such as Alibaba.

The fund was launched by the Hangzhou-based venture capital firm Tunlan Investment; additionally, more than $400 million comes from the Hangzhou city government. The industrial park itself will act as an incubation center for the startups.

Fund will be powered with skilled workers: 

  • Xu Xiaoping - founder of Zhenfund, a venture capital firm that has invested in blockchain projects such as Stream and Lino - as advisor;
  • Li Xiaolai, a notable blockchain investor and bitcoin tycoon in China, has been appointed a manager of the fund

The new fund shows the Chinese government entities latest effort in taking the lead on blockchain development initiatives in the country.

US Congressman to Call for Crypto Ban

As reported, Brad Sherman has called for a blanket ban on cryptocurrency buying
19 July 2018   77

American authorities should ban cryptocurrencies and mining. Such a statement on was made by Congressman Brad Sherman during the hearings of the Committee on Financial Services at the US House of Representatives, CoinDesk reports.

According to Sherman, in the future, cryptocurrencies may become a form of money, but at the moment they are used either by rogue states to bypass American sanctions or by individuals to evade taxes.

We should prohibit U.S. persons from buying or mining cryptocurrencies.

Brad Sherman

Congressman, US

At the same time, Norbert Mitchel, director of the Data Analysis Center of the Heritage Foundation, noted that the possible use of crypto-currency for criminal purposes should not stain other possibilities of digital currencies.

Yes it is true that criminals have used bitcoin, but it's also true that criminals have used airplanes, computers and automobiles. We shouldn't criminalize any of those instruments simply because criminals used them. Those components I believe are the main barriers to widespread adoption in the U.S.

Norbert Mitchel

Director of the Data Analysis Center, Heritage Foundation

As Eswar Prasad, senior professor at Cornell University, said, the existence of cryptocurrencies had the potential to impact the financial services system, particularly the payments system, in positive ways.