While China is known for its harsh rules and regulations regarding the cryptocurrency market – the government has banned ICOs, crypto trading, crypto exchanges, and more – the country is still open to adopting blockchain technology.
According to reports by local finance publication “Securities Daily,” on March 18, Shenzhen, a metropolis in China’s southeastern region, became China’s first city to implement blockchain-based electronic invoices at the Futian Station of the Shenzhen Metro.
Shenzhen is an economic special zone in China, which allows for more free market-oriented economic policies and flexible government measures. This in part made Shenzhen the ideal city to be the first to adopt an application for blockchain technology.
The blockchain-based electronic invoice is a product of the joint operation between the Shenzhen Municipal Taxation Bureau and Chinese tech giant Tencent, the company behind the 1 billion-user social media platform WeChat.
Blockchain-Based E-Invoice for Shenzhen’s Metro
As described by the publication reporting on the development, Shenzhen Metro passengers will be able to see their payment vouchers at the end of each trip via the WeChat Payment voucher page.
Moreover, the report highlighted that as of March 15, 2019, this blockchain-based electronic invoicing system had issued more than 1 million electronic invoices facilitated by blockchain tech. The total invoices amounted up to 1.33 billion Yuan, about $200 million.
The publication also notes that Shenzhen has a large number of subway passengers, and their demand for electronic invoices is high. Once the blockchain electronic invoice system for subway passengers is fully launched, it is expected to record an average of 170,000 online self-service invoices a day.
The implementation of this blockchain invoice system in the Shenzhen Metro is just the first application of this system. It’s reported that other transportation systems including taxis, airport buses, and other means of transportation will implement online blockchain electronic invoicing functions.
Since China is already implementing blockchain for public services, is it only a matter of time before China begins allowing cryptocurrencies to be used with them? Let us know what you think in the comment section below.