The Bank of China will make use of blockchain technology to assist in the management of a poverty alleviation program in Tibet seeking to assist some 330,000 Tibetans living in poverty.
At a recent conference of the Tibetan Branch of the Bank of China (BOC), it was announced that government would use blockchain technology to support the poverty reduction program in the Tibet Autonomous Region (TAR). The state-owned BOC is often closely linked to government policy. It is one of the big four commercial banks in the Chinese financial sector.
While the Chinese government has mandated that ICOs and cryptocurrency exchanges are no longer allowed in China, the use of blockchain technology has continued to experience substantial growth in government activities. Central Bank of China also launched a blockchain registry open platform in March.
The Chinese government has shown a long-term commitment to poverty reduction programs across China. In 2016, the President Xi Jinping announced that the government would eliminate residual poverty from all the provinces, by 2020. The TAR has a high poverty rate of over 12%, while the national average is much lower to 3.1%. There are many challenges with the environment in Tibet. The majority of people are living on a plateau which is over 4,000 meters above sea level.
The BOC has already been working on this in the TAR. The bank introduced a cloud-based system for managing activities associated with the poverty reduction fund, including providing secure access to information and certification processes. As part of its responsibility, the BOC team had committed to exploring cutting-edge technologies for supporting poverty fund management.
Blockchain technology has demonstrated its value in a range of applications mainly related to government and financial administration activity. The blockchain system will provide assistance in facilitating the activity for the poverty alleviation program. This includes management of funding applications, documentation and verification of project details, and allocation of funds to activities.
The BOC indicated that benefits of using the blockchain technology are the traceability of the transactions, the accuracy of the stored data, the precision of funds allocation, and improvements in the efficiency of program management.
The BOC also stated that if the trial is successful in the TAR, then it could be possible to use blockchain technology for supporting poverty reduction programs in other provinces.
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