Although over the past months, China has been cracking down on cryptocurrency-related trading or other activities in the country, it still remains positive about the underpinning blockchain technology. According to the latest report from the South China Morning Post, the government of China’s Hangzhou city has recently funded a whopping $1.6 billion USD or 10 billion Yuan in a blockchain fund dubbed Xiong’An Global Blockchain Innovation Fund.

On Monday, the Hangzhou government announced its funding during the opening ceremony of the Blockchain Industrial Park. However, note that this funding is done in collaboration with a venture capital firm – Tulan Investment where the Hangzhou government will be contributing 30 percent equivalent to 3 billion Yuan.

The Industrial Park is designed in a way to attract industry professionals and start-ups working in the blockchain space. The fund is further said to invest in quality blockchain projects. The new fund sees the involvement of some of the prominent names from China’s blockchain industry.

Xu Xiaoping – founder of another venture capital fund ‘Zhenfund’ will be placed in the role of an advisor. Zhenfund in the past has invested in country’s popular blockchain projects like Lino and Stream. Li Xiaolai, China’s bitcoin tycoon and a notable blockchain investor has been appointed as the manager of the fund.

However, this announcement comes as a surprise after Chine recently scrapped a plan to establish the Blockchain funding center due to some internal structural conflicts. However, the government of Hangzhou has remained aggressive in its pursuit of blockchain projects in the recent past. The government recently announced a blockchain platform for supply-chain and identity tracking last month in March and about own cryptocurrency.

All these developments show that China is making an aggressive push and want to remain at the forefront of developing and using Blockchain solutions.