New guideline for the use of blockchain in agriculture sector by China
The government of China has released a guideline on how to use DLT for the agricultural finance sector. The official declaration was made on the 11th of February.
The use of this new expertise in the agriculture finance sector will improve the collection and data sharing. This will also improve the identification, premature warning, and discarding level of credit risk in the agricultural industry.
The implementation of the new technology will also encourage financial services to work on providing loans and payment settlements for rural e-commerce. The idea to implement technology in the agricultural industry is to improve the financial assistance in the rural industry.
The guide was released by several government agencies and Banks of China. The country has the plan to improve the agricultural financial sector that is why they have released the guideline. With the implementation of blockchain technology and other new technologies, there is ample chance to improve the agriculture finance industry. The small villages and towns will receive an economic impulse with a large amount of credit available.
It is expected, the use of blockchain will improve the credit valuation model of the industry this will, in turn, increase the number of loan issue and decrease the credit risk. This can also have a constructive impact on the Chinese economy which is facing a downturn for the last few years.
Although China has an affection and hate relationship with blockchain and cryptocurrency, it is doing extensive research on blockchain to implement it in various industries but has maintained a tight hold on the cryptocurrencies. They have applied for a higher number of patents in WIPO than any other country around the globe.
China has filled for 225 patents, which is immediately followed by the US for 91 patents and Australia for 13 patents.
A new social credit system is also started in the country. On the foundation of this scoring system, a citizen can be awarded or punished depending on the scores. Depending on the behaviour of a citizen the score will go up and down.
Several business and companies are working on blockchain technology in China even though the digital currencies are still facing a ban in the country. They are also making use of the blockchain in the media industry for copyright protection services. It will also use the technology for copyright cooperation.