Nanjing, China is basically using the blockchain to drive a local economic stimulus program.
In order to reduce the COVID-19 pandemic’s impact on business, Chinese governments at all levels have been coming up with different policies and solutions to help the economy survive.
Nanjing, the capital of China eastern Jiangsu province, is one of the first cities in China to leverage blockchain technology and issue so-called “consumption vouchers” on the blockchain as a kind of crypto-driven stimulus package, according to a local news report on June 23. These vouchers are exchangeable for things like food, transportation and electronics.
A stimulation of millions
As of the middle of June, Nanjing has issued at least 380 million yuan worth about $54 million USD of blockchain-driven coupons through open lottery and directional distribution.
On June 2, Nanjing teamed up with hundreds of brands like Didi Travel, Pizza Hut and Carrefour to jointly set up the “Nanjing Metropolitan Area Consumption Alliance.” The goal is to issue 1 billion yuan (about $141 million) of consumption voucher to help the consumption recovery in the near future.
Jin Tao, senior researcher at Suning Institute of Finance, believes that other cities can also follow suit.
Nanjing also pays attention to long-term policies like improving the business environment and promoting regional innovation in order to sustain economic recovery after the pandemic.
As Cointelegraph previously reported, Chinese e-commerce giant JD Finance opened a research institute in Nanjing for building “smart cities” with blockchain and AI. China’s Central Bank also established its digital currency lab in this city.