According to the reports of Financial News on June 5, the People’s Bank of China (PBoC) revealed a blockchain system to digitize paper checks.
An official at the bank’s digital currency research department, Di Gang said that after a year of development the platform will be ready. Di said that all the operations will be conducted by smart contract and the checks will be tokenized. Chinese officials are hoping that the digitization of checks goes well and will help make checking more transparent and less prone to fraud.
The system developers highlighted that technology’s consensus algorithm meets the timeliness requirements of financial services. Short transaction time of 3 seconds is allowed by digital billing system and it also ensures that the transactions are completed and cannot be tampered with.
The government of China has a skeptical view of the cryptocurrencies. The Chinese government has banned crypto trading and initial coin offerings (ICOs) in late 2017. However, the authorities of China have been enthusiastic towards adopting the blockchain technology.
Last year China filed more blockchain technology patents with the World Intellectual Property Organization (WIPO) than any other country.
In May, President of China Xi Jinping spoke in support of blockchain system at the 19th annual conference of the Chinese Academy of Sciences in Beijing. Xi claimed that it is one of several groundbreaking developments in a “new generation” of technology:
“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.”