Bank Of China Issued $2.8B For SMEs Using Its Own Blockchain

The cryptocurrency news today show that the Bank of China issued $2.8 billion for the Small and Medium Enterprises (SMEs) in the country using its own blockchain bond issuance system. The move comes during massive adoption of the technology in the country.

We can now see that as one of the four largest commercial banks in the country, Bank of China issued $2.8 billion – 20 billion yuan – to the enterprises in blockchain based bonds. The issuance has a two-year 3.5% coupon rate which is the annual interest of a bond, as a statement read.

What’s also interesting is that the bond itself has been issued through the Bank of China and its own blockchain-based system. The bank now claims that this marks the very first bond transaction done in the country using this amazing innovation. The maneuver is part of the rapid blockchain adoption in China which was put in overdrive by the president Xi Jinping earlier this year.

Aside from the foray into blockchain which is hot in the blockchain news today, Bank of China issued a lot of money for SMEs which shows its commitment to the economy. When it comes to blockchain, the country plans to grow its initiatives to 65.7% on an annual basis and predicts that it will reach its peak in 2023. By then, the forecasts for blockchain in China show that the numbers could exceed $2 billion.

Research from the firm Forkast Insights last week confirmed this and detailed just how fast blockchain is maturing in the country of China. From the development of the central bank digital currency (CBDC) to the fact that Bank of China issued $2.8B to SMEs, we can see that the country is going full steam ahead.

As such, it is also leading the cryptocurrency race and is on the top compared to other countries. Reports show that there are thousands of blockchain-focused companies which have sprouted following the blockchain adoption in the country, and only 4,000 of them are focusing their efforts on pure blockchain initiatives. Meanwhile, the report also suggests that 25,000 Chinese firms apparently tried to issue their own cryptocurrency.

Regardless of all of these bumps and roadblocks, China is still leading the cryptocurrency race – and the fact that its blockchain initiatives accounted for 25% of the overall projects in the sector globally are here to confirm this.