China's new framework helps blockchain adoption in agriculture

China’s new framework helps blockchain adoption in agriculture

Authorities in China recently announced the release of a new regulatory framework dubbed “Guiding Opinions on Rural Service Revitalization of Financial Services.” According to the official announcement made on Feb. 11, the new framework is aimed to help improve the efficiency of financial services for rural revitalization programs.

Five authorities in China came together to issue the Guiding Opinions. These authorities included the Peoples’ Bank of China, the China Securities Regulatory Commission, the Banking Regulatory Commission, the Ministry of Agriculture and Rural Affairs, and the Ministry of Finance.

Reportedly, the guidelines were created to promote the application of new technologies such as blockchain in rural communities. Authorities in China are hoping that with the new framework in place, people in the rural areas will use blockchain and other technologies to collect and share agricultural data. In addition, people should be able to use these technologies for “improving the identification, monitoring, early warning, and disposal levels of agricultural credit risks.”

In the announcement, authorities predicted that the new framework would encourage financial service providers to create private loans products and small payment settlement for rural e-commerce. Creditors will be able to reduce lending risks by making use of these technologies. Blockchain applications are also expected to improve the credit evaluation process for agricultural business and help many people get access to loans.

Last month, the Food and Drug Administrators of the Chinese Chongqing Yuzhong District announced their intentions to use blockchain technologies for supervising food and drug quality assurance.

Apart from agriculture, China has used blockchain in other areas. Last December, China launched an internet court in the eastern Chinese city of Hangzhou. The court was created to help fight plagiarism of materials solving a significant problem for online writers.

Though China has remained adamant in banning cryptocurrency use, the country has been a leader in the blockchain application. According to a new study by UHY, an accounting and consultancy network, in 2017, 406 patents filed with the World Intellectual Property Organization (WIPO). Out of this number, 225 patents came from Chinese companies. The United States followed in second with Australia coming in third.

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