Bank Of China To Use Blockchain To Support Poverty Reduction Efforts In Tibet

Announcements, Blockchain, News | May 23, 2018 By:

The Bank of China (BoC), one of the four largest state-owned commercial banks in the country, will be using blockchain technology to support its poverty alleviation efforts in Southwest China’s Tibet Autonomous Region.

The BoC said it will integrate blockchain technology to its cloud-based system, which manages a local poverty reduction fund with functions such as information access, security certification, and file transfer. The cloud-based system enables collective management of projects, including fund application, project verification, and fund allocation.

The upgraded version of the system will include a multi-node blockchain network to connect the bank’s partners, including the Agricultural Bank of China and fund applicants. The bank said the trial in Tibet will set the precedent for similar efforts in other poor provinces, such as Gansu, Yunan and Qinghai.

According to the regional poverty relief office, about 330,000 Tibet residents still live below the regional poverty line. The province has a poverty rate of 12.4 percent, compared to China’s national average of 3.1 percent. More than 85 percent of the land in Tibet is located more than 4,000 meters above sea level. Harsh natural conditions have been part of the causes of entrenched poverty.

In 2017, the Chinese government invested a total of 16.7 billion yuan (2.6B USD) to help locals increase income, relocate, and support the development of over 1,700 anti-poverty projects in the region.