Chinese regulators, including the People's Bank of China and the Ministry of Industry, have issued guidance aimed at implementing blockchain to improve financial services, especially for small and medium-sized enterprises.
Initiative for SME Financing
The guiding documents titled 'Guiding Opinions on Financial Support for New Industrialization' emphasize the need for implementing blockchain, big data, and artificial intelligence to streamline financial services for manufacturers, particularly aiding small and medium-sized enterprises. The focus is on building digital infrastructure, such as 5G and the industrial internet, to broaden financing channels.
Historical Context and Expert Opinions
China's blockchain strategy was initiated in 2019, following President Xi's endorsement, significantly boosting domestic technology growth while maintaining a clear separation from decentralized cryptocurrencies like Bitcoin and Ethereum. Experts note that China's policy could catalyze technological innovation but will not directly impact decentralized crypto assets.
Expected Investments and Their Impact
According to Zhulin Shen, Deputy Director of National Data Administration, the project is expected to attract approximately 400 billion yuan ($54.5 billion) in annual investments over the next five years. This highlights the significance of the new financing approach for small and medium businesses in China.
China's new approaches to financing using blockchain and AI are aimed at supporting the manufacturing sector while remaining outside the influence of decentralized cryptocurrencies.
