According to Reuters, the Chinese tech juggernaut Tencent Holdings, famously known for its WeChat app, is set to invest 500 billion Yuan – equating to $70B – over the following five years in new technological infrastructures. These include artificial intelligence, cloud computing, cybersecurity, and blockchain. However, it isn’t clear how much of the allocated budget of $70B would ultimately be set aside for blockchain, nor has it been clarified on what it will specifically be used for or invested in.
Reuters added that the company has firmly acknowledged that its cloud offerings have indeed suffered a massive hit because of the economic drop caused by the coronavirus. Now that the nation is reemerging back to its former normal state, Tencent believes that expediting its new infrastructure plan will help solidify the virus containment success.
The announcement came just a month after the Blockchain Services Network of China (BSN) launched for commercial use. Blockchain has always been considered a critical part of the tech strategy within the country. The Chinese government hopes that BSN will serve as the backbone infrastructure to leverage the technology nationwide.
The founder of a Chinese crypto firm CoinEx, Haipo Yang, believes that the country’s unwavering support for DLT is positively paying off. He explained that the country’s firm approach to the matter has aided in creating an excellent blockchain tech environment. On top of that, it also helped China’s credentials as a top innovation hub, which led to the emergence of a dynamic and robust blockchain investment scene.
Tencent’s interest with blockchain
Tencent has steadily increased its exposure to the blockchain industry over the past few years. At the last stretches of 2019, the firm launched an invoice system powered by DLT, alongside receiving the go-signal from the regulator from Hong Kong to start operating on a blockchain-supported virtual bank. Tencent has also managed to become a member of the new national committee, helping to set the industry norms for blockchain tech.
Considering that blockchain is a state-sanctioned tech in China, on top of the launching of BSN, Tencent’s move to invest quite a sum towards the industry may come as unsurprisingly but still a very welcome one.