Guangzhou, China to Make Use of Blockchain and Artificial Intelligence for Issuing Business Licenses

Chinese government’s policies have been quite passive towards the cryptocurrency space, even though the country is known to be the digital capital of the world. China also hosts some of the biggest mining farms due to the extensive hydroelectricity available at cheap prices. However, not so long ago the Chinese government announced a complete ban on mining operations in the country. The regulators had earlier banned any crypto exchange from operating on its territory back in 2017 itself.

However, despite their scrutiny towards the crypto space, the country is all up for harnessing blockchain technology and recently the City of Guangzhou issued a business license with the help of blockchain technology and AI. According to a local news publication Sohu, the license was issued by the administrative center of Huangpu District, Guangzhou and makes it the first business license of its kind which makes use of both Blockchain and Artificial Intelligence.

The license programmes literally translate to “scan the code and start the company in one click.” The licensing program not just helps the various business to file an application but also to open a bank account for the business and submit the tax invoice all through a mini WeChat Program. In China, Wechat is not just a messenger application used for texting and calling your friends, but it is a complete ecosystem with options like booking a restaurant, buying food, clothes, paying all kinds of the bill, basically WeChat is China’s all-in-one app and it has the control of the government.

How Blockchain Based Licensing Program Helping In Cutting Time And Labour

Applying for a business license can be a tiring task since it requires a ton of documentation and various gazetted paperwork. Thus, by leveraging blockchain the process can be simplified and helps to reduce the bidding submission time and helps to avoid repeated submissions, as well as provides an easier way for companies to form.

China is known for being technically advanced, and the same holds true for the comparatively modern technology of blockchain. Before the licensing use case, China has also implemented blockchain in its public transport, where the government started issuing a blockchain based invoice for subway rides in the Shenzhen Metro through a project developed by the Shenzhen Municipal Taxation Bureau and Chinese tech giant Tencent. Tencent provided blockchain system that can be used on the WeChat application as it is the default application for every Chinese citizen, be it modern day businessmen or poor on the streets, or even the vendors and shopkeepers.

Guangzhou province of China has become a blockchain hub in the country, along with Beijing and Shanghai, where there has been numerous blockchain focused startups and firms have come up, making these provinces the biggest center for blockchain legalization. Guangzhou has also been selected as the headquarters for a new local blockchain alliance that involved 54 companies focusing on blockchain use in finances, trading, and funds.

Donald Tapscott, the executive chairman of the Blockchain Research Institute has predicted that looking at the progress of the technology in the country despite the passive stance of the government, the country might see its national currency turn into a cryptocurrency real soon.

The prediction might come true since China has a very streamlined form of governance where the government holds all the power which makes it easier to implement any plan faster. The aggressive governance of the state has been quite evidential at many occasions in the past like developing the bullet train networks or opening numerous large scale solar projects.