New Guidance to Implement Blockchain in Agriculture Finance Sector

The Chinese government has issued the “Guiding Opinions on Rural Service Revitalization of Financial Services,” according to an official announcement on Feb. 11. The new framework is part of a plan to improve the efficiency of financial services for the country’s rural revitalization program.

The guidance will purportedly help promote the application of new technologies in the rural financial sector, such as blockchain, to “improve the identification, monitoring, early warning, and disposal levels of agricultural credit risks.”

The Guiding Opinions were jointly issued by the People’s Bank of China, the Banking Regulatory Commission, the China Securities Regulatory Commission, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs.

Applying blockchain in agriculture finance will purportedly streamline the collection and sharing of of agricultural data. Blockchain-based customer screening is expected to improve the credit evaluation model of agricultural businesses, increasing the number of loans issued while decreasing risk to creditors.

The announcement also predicts that new technologies will encourage financial institutions to “develop exclusive loans products and small payment settlement functions for rural e-commerce and to open up a rural e-commerce capital chain.”

China’s foray to apply blockchain in various industries also extends to copyright protection services in their media outlets. In December 2018, the China Financial Media Copyright Protection Alliance — which consists of more than 30 financial media outlets — announced that it will use blockchain technology to develop copyright cooperation in the industry.

Overall, China is a world leader in applying blockchain technology to various industries. In 2017, China filed more patents for blockchain applications with the World Intellectual Property Organization (WIPO) than any other country. Well over half of the 406 patents filed with the WIPO that year were from China, with 225. China was followed by the United States, at 91, and Australia, with 13. is a completely independent publication covering cryptocurrency, the Blockchain, decentralized applications, the Internet of finance and the next generation Portal. We offer the latest news, prices, breakthroughs and analysis with emphasis on expert opinion and commentary from the digital currency community. The world of digital currencies flourishes with the greater fervor with each passing day. With an increasing number of businesses, entrepreneurs, startups and consumers adopting this technology, we are proud to spend every day at work and play increasing awareness of the many intricacies and advantages offered by these innovations. About one thing we are certain: it is increasingly important to educate oneself in and be aware of new financial and technological innovations.

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