China:Shenzhen City Tests Digital Identification via Blockchain

According to the Xinhua News Agency and the Global Times newspaper, local authorities in Shenzhen have launched an electronic identification platform via a blockchain.

It will be compatible with 24 forms of identification and certification. Residents can access the platform via a mobile application, which operators describe as “encrypted, traceable and tamper-proof”.

We know that China prepares to launch a blockchain offensive and launch its digital yuan next year; the country seems to be really interested in exploring the blockchain technology because the city of Shenzhen and one of the country’s largest banks (China Construction Bank) seem to play a vital role in this national initiative.Actually, they will call the app: iShenzhen.  According to  Xinhua, this app is compatible with birth certificates, citizen ID cards, proof of address and criminal records. They also say that its scope will be expanded from January 2020.As reported in November, as China prepares to launch its national digital currency, a development official said the goal of China’s move is not to take full control of information belonging to public, but to strike a balance between confidentiality concerns and the need for information gathering by the authorities.

In addition, China Construction Bank has launched a factoring platform via blockchain, reports the media Sina. The bank believes the platform will help “increase efficiency and reduce risk” for companies that are involved in the factoring industry. Factoring refers to a type of debtor financing whereby companies sell their accounts receivable, such as invoices, to third-party companies.

Shenzhen and the CWB would play a key role in the central project of the digital yuan led by the People’s Bank of China.

Shenzhen, the largest continental city closest to Hong Kong, would be one of two pilot sites to test the digital yuan. China Construction Bank, which is believed to be the second largest bank in the world, is one of four state-owned commercial banks that are working with the central bank on this pilot project.

Image credit:unsplash

Check Also

JP Morgan Will Launch an INN Blockchain Network in Japan

According to Bloomberg Japan, in early 2020, JP Morgan will launch INN in Japan.  Actually, …