China Aims to Boost Blockchain Adoption for Small Business Financing

China's push for banks to upgrade their 'bank-tax interaction' model using blockchain technology has sparked interest in the sector. The government aims to improve credit models, enhance approval efficiency, and increase financing services for compliant businesses.

According to a policy notice issued by the State Administration of Taxation and the National Financial Regulatory Administration, banks and taxpayers should standardize data sharing to reduce information asymmetry between tax authorities, banks, and enterprises. This effort is expected to attract around $58 billion in yearly investments, as stated by Shen Zhulin, deputy director of the National Data Administration.