WeChat Invests $70 Billion in Fintech, Including Blockchain and AI

Chinese tech giant Tencent Holdings will allocate nearly $70 billion (500B yuan) over the next five years in fintech development, including blockchain, cloud computing, and artificial intelligence (AI).

Reuters reported on May 26 that the company, which is behind the WeChat messaging app, hopes to strengthen the development of fintech across the country, following the recent embrace of blockchain by the Chinese government. 

Tencent wants to expand to business services and will invest in 5G networks, Internet of Things (IoT) operating systems and large data centers, among others, 

Pandemic boosts blockchain interest in China

The tech giant said that the COVID-19 crisis had been a critical factor motivating companies to develop their cloud-based technology infrastructure.

According to Dowson Tong, senior executive vice president of Tencent, expediting this new infrastructure strategy “will help further cement virus containment success.”

Tencent’s financial support for blockchain technology builds on its recent announcement of strategic moves to cement its presence in blockchain development across China.

Chinese government adopts blockchain

Cointelegraph reported on April 30 that Tencent had opened applications for its new “Tencent Industrial Accelerator,” with a total of 30 places.

The National People’s Congress, China’s Parliament, and Chinese People’s Political Consultative Conference proposed a government-backed blockchain development fund on May 24 to build “a better governance system.”

Some provinces in China are also beginning to show interest in blockchain technology, such as Anhui, which has officially launched a blockchain platform for providing government services.