Breakthrough for Blockchain: The Chinese Government has just announced that it will be using Blockchain Technology to collect taxes and for electronic invoices!
Just in my last post, I was writing about the growing importance of Asian markets in the crypto world, and now I've just come across the news that China is looking into using Blockchain Technology.
China has been very hesitant with cryptocurrencies in the past to say the least, so seeing that they finally acknowledge the benefits of Blockchain Technology is a great step forward.
China even has plans to launch their own national cryptocurrency in the near future!
With a reported GDP of over $10 trillion in 2016 alone, China is the world's largest economy.
So testing the benefits of Blockchain Technology on such a large scale could become very interesting!
Since the People's Republic of China was founded in 1949, it creates a macro-economic plan called "Thirteenth Five-Year” National Informatization Plan and revises it every 5 years.
And this time, Blockchain Technology was mentioned in it too!
Today, an article from miaocaiwang revealed that:
“The Chinese government will utilize blockchain technology for social taxation and electronic invoice issuance matters.”
Miaocai Network is an invoice- and taxation system operator certified by the State Administration of Taxation.
It's an important link in the "National economic data security system".
On their website, Miaocai announced that it will team up with the “government affairs chain GACHAIN” to create an electronic tax- and invoice system -
and also making use of Blockchain Technology.
“China’s tax collecting procedures feature slow tax reporting times and insufficient coordination. By making use of the unrivaled advantages of BLOCKCHAIN TECHNOLOGY, together with the GACHAIN team, we are integrating core finance and tax business into GACHAIN. By taking advantage of GACHAIN’s ability to regulate, trace back, and circulate documents easily, prevent falsification, high rate of concurrency, and external interface benefits, we can cover the entire process workflow from electronic invoice generation through the end of the process without increasing costs for those involved. Our corporate clients, while enjoying the benefits of streamlined processes and ease of use, simultaneously go through the tax reporting process, and taxation authorities can monitor the route of every electronic invoice in real time. The public can also check the validity of every document, thus simplifying the entire business process, increasing convenience and transparency, and putting a curb on invoice-related problems.”
-Jie Du, Chairman of Miaocai Network
The Chinese tax system could benefit from Blockchain Technology in several different ways.
By combining tax collection with Blockchain Technology, tax evasion could be prevented.
China has reported a tax revenue of $2.4 trillion last year, which makes it number 2 in the global ranking (after the USA).
Some major online stores like Taobao, WeChat or Tmall haven't even been integrated in China's taxation system yet, so when blockchain technology enables electronic invoices and tax agents, these type of business could contribute a lot more to the national tax revenue.
“I think that the key is to have government bodies acknowledge what’s in the blockchain, such as copyright ownership, the attributes of business organs, and property transactions, but with the prerequisite that they must conform to laws and regulations. When these two points are fulfilled, the blockchain and real world can be linked seamlessly. GACHAIN is designed and developed with this concept in mind. In other words, GACHAIN is – Blockchain as Government Affairs.
-ChainHold CEO Lin Wan
Real-world applications for Blockchain Technology - apart from just cryptocurrency
I'm very passionate about this topic, and have written several topics about it already: Blockchain Technology offers countless benefits in many different industries, apart from cryptocurrency or even the financial sector!
People still associate blockchain only with Bitcoin, but it's so much more.
Blockchain Technology can be used to ensure food safety by tracking the supply chain, it can help us save the environment by providing transparency and eliminating environmentally unsustainable factors, it can be used to increase the technology in certain technological products (for example self-driving cars) and so much more!
Due to its secure and transparent nature, Blockchain Technology enables to document anything with a timestamp, without room for cheating or alterations.
I'm more than certain that Blockchain Technology has the ability to change our everyday lives, and I'm excited to see how more and more businesses will realize its benefits in the future!