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China to use blockchain technology in its new social credit system

China to use blockchain technology in its new social credit system

Following President Xi Jinpingโ€™s decision to embrace blockchain technology, different federal agencies within China stepped forward to abide by the new order. Now, several industry experts held a seminar to create an elaborate digital system of governance.

A new social credit system using blockchain technology

On Jan. 14, a seminar was held in Beijing dubbed โ€œBlockchain technology helps China’s new social credit system.โ€ The event intended to unite some of the most prominent experts in the blockchain industry to work together in building a new social credit system.

According to a report by China.org.cn, over 20 blockchain specialists participated in the seminar. These industry experts ranged from scholars to researchers and entrepreneurs who came from within China and abroad.

During the seminar, it was concluded that artificial intelligence as well as blockchain technology will play a big role in developing Chinaโ€™s social credit system.

The report reads:

โ€œThe experts reached the consensus that the driving force for the long-term development of the world economy is ultimately innovation. They added that when looking back in history, it’s clear that the vitality and creativity released by the reform of institutional mechanisms, and the new industries and products created by technological advancement, are the fundamentals needed for the world economy to emerge and recover from major crises.โ€

The event was organized by the Yunhe Technology Group, the Yunhe New Social Credit System Joint Research Institute, the China Blockchain Enterprise Social Responsibility Research Institute, and the Beijing Huaxia Industrial Network Intelligent Technology Research Institute.

The government keeps an eye on its citizens

The Chinese state plans to launch a nationwide ranking system that will monitor the behavior of its enormous population. Over 1.4 billion Chinese citizens will be ranked based on their โ€œsocial credit.โ€

The new โ€œsocial credit systemโ€ was first announced in 2014. Its main purpose is to observe closely all aspects of life of Chinese nationals judging by their behavior and trustworthiness. According to the governmentโ€™s document, Planning Outline for the Construction of a Social Credit System (2014-2020), โ€œkeeping trust is glorious and breaking trust is disgraceful.โ€

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