The People’s Bank of China is developing a Blockchain system for paper checks digitization
Financial News local media reported on June 5th that the People’s Bank of China (PBoC) has demonstrated a blockchain-powered system for paper checks digitization. The main purpose of the system is to resist financial fraud as well as decrease expenses for printing checks.
As per the official at the bank’s digital currency research department Di Gang, the mentioned platform appears after a year of growth. Di mentioned that checks will be tokenized and all transactions will be carried out via smart contracts. Chinese official representatives believe that the process of digitizing checks will cause checking to be more transparent, understandable and contain no fraud.
The developers of the system underlined that the consensus algorithm of the technology encounters the timely demands of financial services. The new digital billing system allows “short transaction times” of about 3 seconds and guarantees that the operation has been fulfilled and cannot be falsificated.
The Chinese government popular for its distrustful position towards cryptocurrencies, have banned cryptocurrency trading and initial coin offerings (ICOs) in late 2017. Nevertheless, China’s authorities have accepted blockchain technology. A year ago China registered more blockchain technology patents with the World Intellectual Property Organization (WIPO) than any other country.
In May, President of China Xi Jinping gave a report in support of blockchain at the 19th annual conference of the Chinese Academy of Sciences in Beijing. Xi said:
“The new generation of information technology represented by artificial intelligence, quantum information, mobile communication, internet of things, and blockchain is accelerating breakthroughs in its range of applications.”
