National Bank of China will use the blockchain to upgrade the existing system to combat poverty in the hope of increasing its effectiveness and transparency.
The blockchain has some serious advantages that make this technology very promising and fulfilling direction. One of the industries where efficiency, safety and permanence of the blockchain can be particularly useful is the financial sector. As this industry largely depends on the accounting, the distributed book can solve a lot of problems with tracking data.
The fight against poverty
According to China Money Network, China’s Central Bank hopes to use the blockchain for fighting poverty in Tibet, where the poverty level is 12.4%, which is 4 times more than in China.
The Bank will use blockchain tech to upgrade an existing cloud system of the state Fund for poverty reduction. In addition to security control and other functions, this system allows you to manage projects in respect of applications for funding and subsequent allocation of these funds.
A new approach with multiple nodal chains bind the Bank with other stakeholders in the project, including the Agricultural Bank of China.
The advantages of the blockchain
The integration of the blockchain in financial sector allows you to track every transaction. This transparency is especially important when working with large sums of money, especially when the decision-making process involved several parties.
In case of success in Tibet, the Central Bank hopes to create a number of similar funds in poor provinces of China such as Qinghai, Yunnan and Gansu.