Chinese multinational tech behemoth, Tencent has revealed its plans to invest heavily in emerging technology industries, including blockchain.
Tencent To Invest $70 Billion
According to a Tuesday report, the company will, over the next five years, invest 500 billion yuan ($70 billion) into this project, which it describes as investing in “new infrastructure.”
Speaking about the development, Dowson Tong, Senior Executive VP at Tencent, revealed that the investment covers other tech sectors such as artificial intelligence, cloud computing, big data centers, cybersecurity, IoT operating systems, supercomputers, quantum computing, and 5G network.
Tencent’s move to undertake the intensive investment project is coming after Beijing’s call for a tech-driven structural upgrade to boost China’s economy coupled with the increasing demand for enterprise software and cloud services.
More Businesses Going Online
Founded in 1998, the company is famous for its WeChat messaging app and some popular online games, including PlayerUnknown’s Battlegrounds (PUBG) and Fortnite. However, Tencent is planning to expand its brand to include business cloud services due to the high demand in the market.
The multinational conglomerate noted that cloud businesses were hit by the harsh effects of the COVID-19, but also said that it expects more offline industries and companies to adopt cloud and digital services in the long run.
“Expediting the ‘new infrastructure’ strategy will help further cement virus containment success,” Tong said.
Tencent Blockchain Accelerator
While the VP did not reveal how much of the investment the company would commit to blockchain technology, Tencent recently launched a daring project dubbed “Tencent Blockchain Accelerator.”
According to reports, the accelerator project is aimed at 30 blockchain-focused companies and will provide mentorship to the selected applicants.
A report from last week also disclosed that China enlisted some of its biggest companies, including Tencent, to form a blockchain committee to support the nation’s goals in the field.
The new team, which also includes other tech moguls like JD, Huawei, Ant Financial, and Baidu, will be called the National Blockchain and Distributed Accounting Technology Standardization Technical Committee.
While China is actively working to ensure it becomes a global blockchain hub, the famous Switerzland’s famous Crypto Valley could turn to a death valley as the Swiss government refused to inject a $103 million stimulus package into its blockchain industry.