New directive for the implementation of the blockchain in the sector of financing of agriculture

The Chinese government has published the "Guidelines on revitalizing rural financial services", according to an official announcement released on February 11. The new framework is part of a plan to improve the efficiency of financial services for the country's rural revitalization program.

The guidelines allegedly contribute to promoting the application of new technologies in the rural financial sector, such as the blockchain, to 'improve identification, monitoring, early warning and levels'. elimination of agricultural credit risks ".

The guidelines 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.

The application of the blockchain to the financing of agriculture would supposedly simplify the collection and sharing of agricultural data. Blockchain-based customer filtering is expected to improve the credit rating model of farm businesses, increasing the number of loans issued while reducing risk for creditors.

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

The Chinese incursion into the application of blockchain in various sectors also extends to copyright protection services in the media. In December 2018, the China Financial Media Copyright Alliance – which brings together more than 30 financial media – announced that it would use blockchain technology to expand copyright cooperation in the sector.

Overall, China is a world leader in the application of blockchain technology to various sectors. In 2017, China filed more patents for blockchain applications with the World Intellectual Property Organization (WIPO) than any other country. More than half of the 406 patents filed with WIPO that year came from China (225). China was followed by the United States (91) and Australia (13).