In the midst of the Wuhan coronavirus outbreak crisis, financial regulators in China have somehow managed to remain busy and focus on the government agenda to exert control over blockchain development and digital currency use. To this effect, the Hunan province is the latest to debut a special economic zone where technology firms can develop projects related to blockchain apps and financial services.

The new Wanbao blockchain zone is located in Loudi, a Chinese city that ranks within the top 20 metropolitan areas ideal for promoting blockchain development. The Hunan province is already rich in terms of technology innovation, and a few established blockchain startups have already set up shop here; in fact, more than 780 blockchain firms are operating across Hunan, and they now have a green light to set up offices in Loudi.

For Chinese officials who intend to make their country a global hub for the blockchain economy, Wanbao is just the beginning. The city of Changsha is where two other blockchain zones will start operating later this year, thus making Hunan an even more attractive spot for technology firms. From now until 2023, the Communist Party of China expects to see an influx of $2 billion worth of state and private investments dedicated to blockchain projects.

While the government in China is providing stronger support to domestic blockchain companies, the Hainan Free Trade Zone was the first to receive $142 million for the purpose of establishing a blockchain district. This is an island where companies from across Asia have been setting up shop since 2018, and 100 of them are dedicated to blockchain projects. A special ceremony to grant free trade zone status to Hainan is planned for later this year, and there are plans underway to make the island a major maritime shipping port.

China continues to be somewhat of a conundrum with regard to cryptocurrency adoption. Analysts believe that China is a market ripe for widespread adoption of digital currencies, but the Communist Party wants the government to exert tight controls. Even though China is where most Bitcoin mining farms are located, use of the token is banned across the country.