China's Tax Authority Directs Banks to Adopt Blockchain for Enhanced Lending Transparency

Chinese tax and financial regulators are pushing banks to integrate blockchain technology to improve credit facilities and data transparency. The move aims to strengthen the 'bank-tax interaction' model and expand financing for small businesses.

• Chinese tax and financial regulators are urging banks to adopt blockchain and privacy computing to enhance credit facilities and data transparency.
• The directive aims to standardize data sharing between tax authorities, banks, and enterprises to reduce information asymmetry.
• The National Development and Reform Commission roadmap targets nationwide blockchain implementation by 2029, with an expected 400 billion yuan ($58 billion) in annual investments.
• China’s blockchain initiatives align with a broader strategy to integrate the technology into data infrastructure, despite strict controls on cryptocurrencies.
• The Shenzhen Tax Bureau expanded the first blockchain electronic invoice system in April 2021, but a nationwide crypto ban followed in September 2021.
• As of January 2026, China accounts for 11.7% of the global Bitcoin hashrate, remaining the third-largest mining country despite the ban.