China Issues a New ‘Guiding Opinions’ Plan on How to Use Blockchain to Revitalize the Agriculture Sector
The Chinese government has just issued a new guide on how to starting implementing distributed ledger technology (DLT) in the agriculture finance sector. The information was released in an official announcement by the Chinese government on February 11. The main intention behind it is to improve the efficiency of financial services in the rural sector.
With this project, the government wants to enhance the rural financial sector using blockchain, among other innovative technologies. This would allow for improving identification, monitoring and disposal level of agricultural credit risks.
The guide was released by several agencies in China including the People’s Bank of China, the Banking Regulatory Commission, the China Securities Regulatory Commission, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs.
With the implementation of blockchain technology in this industry, it will be possible to have an innovative system on how to collect and share agricultural data. Additionally, it is expected to improve the credit valuation model of businesses. In the future, there could be more loans issued and decrease risk to creditors.
This could also have a positive effect on the Chinese economy, which has been slowing down during the last few years. With a larger credit available for the agricultural sector, smaller villages and towns could receive an important economic impulse.
China has been working with blockchain technology in many different areas including copyright protection services. The country has filed more patents for blockchain applications with the World Intellectual Property Organization (WIPO) than any other country around the world.
According to Business Insider, China has also started ranking citizens with a new social credit system. With it, people can be rewarded or punished according to their scores. According to their behaviour, citizens’ scores can move up and down.
There are several companies in China that are also working with distributed ledger technology, even when virtual currencies are banned in the country.