Blockchain Electronic Invoice Issued By China Merchants Bankbr>
China Merchants Bank (CMB) has become the first bank in the country to issue blockchain electronic invoices.
Founded in 1987, CMB is the first share-holding commercial bank wholly owned by corporate legal entities in China. It has over five hundred branches in mainland China and one in Hong Kong, and operates through wholesale finance business, retail finance business, and other business segments. The bank offers personal and corporate savings, personal and corporate loans, investment banking, international settlements, trade financing, foreign exchange trading, gold trading and bank card services, among others.
In its official release, the bank said it completed the development of blockchain electronic invoice system in just over a month, and connected it to the blockchain platform of Shenzhen Tax Bureau. According to CMB, blockchain electronic invoices connect each invoice stakeholder to facilitate tracing invoice’s sources, authenticity and reimbursement information. It will help address a number of issues that plague existing processes including false declaration and over-reporting of one vote and can significantly reduce operating costs and tax risks.
“For the tax authorities, the life cycle of the invoice can be monitored in real time, intelligent tax management can be realized, and the tax can be guaranteed to be paid in full and on time,” the bank said. “Compared with traditional paper invoices, the introduction of blockchain technology electronic invoices highlights its unique advantages of risk management control, convenient operation and full chain processing.”
CMB has been actively exploring potential applications of blockchcian technology in the banking industry. The banks other blockchain application projects include cross-border payment, inter-bank signing, ABS and bill transfer.
“The successful commissioning of the blockchain electronic invoicing system marks an important step forward for China Merchants Bank to explore the application of blockchain technology in the “tax and taxation field,” CMB said.