In China, digital transformation has become a national priority. The process is being integrated into enterprise, banks and other business services industries. In a report issued on February 4 from the Economic Information Daily agency of China, Chairman Hong Qi of the Minsheng Bank stated that the complete adoption of digital technologies, such as blockchain, is expected to move forward at a rapid pace. It is expected to transform and upgrade agriculture, finance, manufacturing and other services around China over the course of the upcoming 10 years.
China's Minsheng Bank is the first nationwide commercial bank that is owned mostly by non-government enterprises. It is well-known for issuing loans to small- and medium-size businesses. It is also recognized as an early adopter of blockchain technology in the banking industry of China. It has applied blockchain technology to two essential areas of the traditional financial services sector. Those sectors include forfeits and letters of credit.
Established bankers in China anticipate that blockchain will amend the key standards of the nation's financial system. The blockchain technology is also expected to have a considerable impact on the foundations of other services, including other parts of banking and the business relationships between companies in need of financing and the banks themselves.
In December 2019, there were reports that the Bank of China had already issued 20 billion yuan, or $2.8 billion United States dollars in bonds for small- and medium-size businesses that plan to implement blockchain technology into their setups. A few months ago, an outlet also reported that a new blockchain-based identification was in the works for a smart city. This setup was independently developed with the expertise of three institutes located in the North China province of Hebei, specifically in the city of Shijiazhuang.
To date, more than 10 million invoices have been issued through blockchain. These have been issued in the tech-heavy city of Shenzhen. Blockchain fans should keep an eye on these developments as China's leadership and heft in the world economic forum continue to grow at a rapid pace. Their manufacturing and exporting could also change based on blockchain.