Home
Cryptocurrency
Cryptocurrency News
China Urges Banks to Use Blockchain for Lending, Tax Data Sharing

China Urges Banks to Use Blockchain for Lending, Tax Data Sharing

Blockchain push aims to improve access to credit by using verified tax records.

Written by Rahul Dhingra, Edited by Ketan Pratap | Updated: 6 April 2026 18:15 IST

China Urges Banks to Use Blockchain for Lending, Tax Data Sharing

Photo Credit: Unsplash/Shubham Dhage

China explores blockchain use in banking to enhance lending processes

Click Here to Add Gadgets360 As A Trusted Source

Highlights

Banks to use tax data for better credit assessment
Blockchain to reduce fraud and improve data accuracy
Focus on supporting small and medium enterprises

China's tax authorities are pushing banks to adopt blockchain technology to improve the process of lending and enabling secure sharing of tax data. This decision aims to strategise credit access for businesses by allowing financial institutions to verify borrower data more efficiently. Regulators are looking forward to enhancing transparency, reducing fraud risks, and improving access to financing by integrating blockchain technology. This method is focused particularly on small and medium-sized enterprises in the country's ever-evolving digital economy.

New Initiative Targets Faster Lending and Data Transparency

This initiative focuses on linking tax data with financial systems so banks can assess their creditworthiness more effectively. Blockchain is expected to make it possible for tax authorities and lenders to share records in a safe way that can't be changed, which will make them less dependent on traditional paperwork. This system could help small businesses access credit more easily, which has long been a problem. It could also make risk assessment and loan approvals faster and easier.

Officials have emphasised the importance of blockchain in improving financial transparency and trust. The system is designed to ensure that data shared between institutions will remain accurate and verifiable, while supporting more efficient lending processes. Shen Zhulin, the deputy director of the National Data Administration, said at a January 2025 press conference that China expects blockchain-based data infrastructure to attract CNY 400 billion (roughly Rs. 5,38,000 crore) in annual investment.

China Removes Bitchat App From Apple Store Over Regulatory Concerns

This development comes out against the backdrop of China's strict rules on trading cryptocurrencies. In 2021, the country declared all crypto-related transactions illegal, reinforcing its focus on regulated digital finance systems while limiting speculative trading activity. Despite the ban, China has continued to explore blockchain applications across sectors, including finance, supply chains, and government services, highlighting a clear distinction between crypto assets and underlying blockchain technology.

China's broader strategy is to use new technologies to make financial oversight stronger and more efficient. The push to add blockchain to lending and tax systems is an example of this. As more people use the initiative, it could change how people get and use credit in the country. It could also strengthen the role of blockchain in regulated financial systems instead of speculative markets.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.

Comments

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Cryptocurrency, Blockchain, Crypto Regulations

Rahul Dhingra

Email Rahul Dhingra

Rahul Dhingra is a crypto writer at Gadgets 360, where he covers the exciting world of Cryptocurrency, Blockchain, Defi and Web3. Before joining Gadgets 360, he worked as a content specialist for a European-based Crypto Exchange. Rahul loves storytelling, not just through the written word but also through the visual medium. Beyond his professional life, Rahul is a sports fanatic. Whether it’s cricket or football, his passion for the game is contagious. More

Realme's Wong on the 16 5G Launch and the Industry Price Surge: "Value Must Rise Faster Than Prices"