The Government of China has released ‘Guiding Opinions on Rural Service Revitalization of Financial Services’, to encourage mass adoption of blockchain in the agricultural financial sector. The new framework has been formulated to streamline financial services in rural areas with blockchain; for improving identification, monitoring, and early warning; and reducing the farmer-specific agricultural credit risks.
It is estimated that the use of blockchain in agricultural finance system will facilitate a seamless way of collecting and sharing of agricultural data. As stated, farmers will have a transparent credit evaluation model for their agricultural businesses and more number of loans will be granted as credit risk will decrease.
As per sources, the Guiding Options were issued issued by the Government of China in association with People’s Bank of China, China Securities Regulatory Commission, the Ministry of Finance, and the Ministry of Agriculture and Rural Affairs. The program is expected to allow financial organizations build specific loan products and payment settlement functions for developing a rural e-commerce capital chain.