Tencent is pouring $ 70 billion into new technology including Blockchain
Chinese internet giant Tencent is looking to invest heavily in new technologies like blockchain because it looks like it will overcome the impact of the coronavirus epidemic.
The creator of the popular messaging service WeChat, Tencent is investing 500 billion yuan ($ 70 billion) in new infrastructure, based on emerging technologies over the next five years, according to a Reuters report.
In an interview with state media on Tuesday, Dowson Tong, senior executive vice president of Tencent, confirmed that the company has also spent investments in areas such as cloud computing and artificial intelligence. network creation and security.
It is unclear what Tencent's $ 70 billion investment will eventually be devoted to blockchain, nor is it clear on what it will specifically invest in.
According to Reuters, the company has admitted its cloud services have been affected by the coronavirus economic downturn. As the nation begins to return to normal, its new Infrastructure Strategy will help continue its successful containment of viruses, Xi Tong said in a report by Guangming Daily.
See also: Inside China Plan to enhance global Blockchain adoption
This news comes a month after the China Blockchain Service Network (BSN) was launched for commercial use. Blockchain is an important part of the country's technology strategy, and the government hopes BSN will form the backbone infrastructure for technology-taking services nationwide.
China has consistently supported DLT paying dividends, believing that Haipo Yang, founder and CEO of Chinese cryptocurrency exchange CoinEx. Speaking to CoinDesk recently, he explained that this clear approach helped create a good environment for blockchain technology, improve China's credentials as an innovation hub and lead to the emergence of vibrant blockchain investment landscape.
See also: Why China banned Crypto but appeared on Blockchain
Tencent has gradually increased its exposure to blockchain. At the end of last year, it launched a bill system provided by DLT and received a green light from Hong Kong regulatory authority to start working on a blockchain-based virtual bank. It also became a member of a new national committee to help set industry standards for blockchain technology, along with several competitors.
With blockchain being a state-sanctioned technology in China and with the infrastructure for a host of new services - BSN - coming out, it's no surprise that Tencent chose to spend billions of dollars. Potential to invest in emergency engineering.