China Makes Move to Digitize Paper Checks with Blockchain
Smart contracts and tokenized versions of paper checks seem to be in China’s future. According to a local Chinese news site, Financial News, the People’s Bank of China (PBoC) will be digitalizing paper checks with blockchain technology.
The main reason for digitizing checks is to create a more transparent system and help eliminate corruption. The development of the blockchain powered system has been in the works for a year. Special care was taken to ensure that the financial services requirements were met.
Although China has heavily regulated cryptocurrencies, the government still seems very interested in the underlying blockchain technology. The concerns of the Chinese government stem from ICO frauds and people public safety. By creating their own governmental solutions, China is able to utilize blockchain technology without the risk of a third party company.
Another example of China being extremely interested in Blockchain solutions despite strict regulatory control is the number of blockchain patents filed. Last year, the number of blockchain patents filed in China was the largest number in the world.
China’s embrace of blockchain technology mixed with their strict regulations begs a few questions. Most importantly, it begs the question of whether or not regulations will become less strict as the Chinese government begins understanding the role of blockchain technology in people’s lives further. With more use cases and implementations of blockchain solutions worldwide, it seems possible China won’t want to miss out on the economic opportunities cryptocurrencies offer. After all, they clearly understand the technological benefits and potential uses.