China’s tax and financial authorities told banks on April 6 they need to start using blockchain technology for lending services and better data transparency. The directive came from top government officials who see blockchain as a way to make banking operations more secure and efficient. The People’s Bank of China has led efforts to explore digital currency and blockchain solutions, intensifying work in recent months to improve monetary policy and payment systems.
April’s bank directive fits into this bigger strategy to keep China ahead in fintech innovation. The State Administration of Taxation highlighted blockchain’s role in tax collection on March 15, saying distributed ledger technology could create more transparent systems that track transactions in real time. The National Development and Reform Commission backed blockchain integration on April 3, with officials noting the technology could boost efficiency in resource allocation and support sustainable growth by providing more transparent and accountable financial systems.
Bank of China and Industrial and Commercial Bank of China are reportedly evaluating pilot projects to test blockchain’s effectiveness in lending services, with China Construction Bank announcing plans to explore blockchain-based solutions for cross-border transactions. These trials aim to reduce loan-processing inefficiencies and improve credit assessment, as the banks also explore cross-border solutions for international trade finance. The initiative is part of a broader push to position Chinese banks at the forefront of global financial innovation.
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