China Launches Blockchain-based System to Digitize Paper Checks

Chinese Central Bank Develops Blockchain System to Digitize Paper Checks

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  • People’s Bank of China Launches Blockchain System to Digitize Paper Checks.
  • The system aims at combating financial fraud and reducing the costs of printing checks.

China: As reported by a local media, China’s central bank – the People’s Bank of China (PBoC) – has on Tuesday 5th June unveiled a blockchain-based system with the ability to digitizes paper cheques. The blockchain-based system aims at combating financial scam as well as reducing the costs associated with printing checks.

One of the officials at the central bank’s cryptocurrency research department, Di Gang, said that the blockchain-based system had been in development for a year. Gang added that cheques would be digitized and subsequent processes would be conducted using a smart contract. Officials of PBoC believes that digitizing cheques improves transparency of the checking process and makes it less susceptible to scam.

The blockchain-based system’s developing team highlighted that the consensus algorithm of the system appropriateness meets the need of the financial services. The digitized checking system reduces the transaction time to approx. 3 sec. and also guarantees the successful completion of the transaction which cannot be altered.

China is renowned for its unfavorable disposition towards digital currencies and has barred crypto transactions and ICOs within its territory since last year. Nevertheless, China has been enthusiastic towards the blockchain tech filing more patents on blockchain-related products with WIPO than any other nation.

Just last Month, President Xi Jinping of China while speaking at the annual academic conference hosted by the Chinese Academy of Sciences in Beijing, expressed his backing for blockchain tech. Xi declared that the technology is one of many ground-breaking developments needed by China:

“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.”

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