Blockchain System to Digitize Paper Checks Developed by Chinese Central Bank
A blockchain-powered system has been developed by the People’s Bank of China (PBoC) in order to digitize paper checks as reported by local media. The system seeks to battle financial fraud and in addition, lessen costs for printing checks.
Blockchain is the world’s leading software platform for digital assets. Offering the largest production blockchain platform in the world, they are using new technology to build a radically better financial system.
As per an official at the bank’s digital currency research department, Di Gang, the platform is finally live after a year-long wait of developing the platform. Di Gang said that the checks will be tokenized and all activities will be directed by smart contracts. Chinese officials believe that with the help of digitizing checks the chances of fraud will lessen as the checking will become more transparent.
The developer of the system stressed that the technology’s consensus algorithm meets the timely needs of financial services. The digital billing system enables “short transaction times” of nearly 3 seconds and guarantees that the transaction has been completed and cannot be tampered with.
The Chinese government is known for its wary position towards digital currencies, having restricted cryptographic trading and initial coin offerings (ICOs) in late 2017. Be that as it may, China’s authorities have excitedly embraced the blockchain technology. A year ago, China recorded more blockchain technology patents with the World Intellectual Property Organization (WIPO) than any other nation.
The President of China, Xi Jinping spoke in support of blockchain technology in May, at the 19th annual conference of the Chinese Academy of Sciences in Beijing. Xi asserted that blockchain is one of the few 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.”
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