The Central Bank of China recently issued 20 billion Chinese yuan ($2.8 billion) of special bonds which it sold in order to fund small and micro sized businesses in the country. Now that China is introducing bonds on blockchain, many think that the country marked a sign of what is coming in the future.
According to the China Development Network, the recent issuance of $2.8 billion in bonds is nothing you can look on twice. The move was largely expected knowing that the bank has a small and micro-enterprise loan balance at 404 billion yuan so far this year. All of this represents an increase of 35.36% since the end of the previous year and is a move that caters to a market of around 410,000 small and micro enterprise owners.
Still, the bonds were not issued in the standard way. As China is introducing bonds on blockchain, we can see that the interest of market participants all around the world is triggered. The blockchain news today show that the central bank in the country used the technology to organize the affair – something that could be seen as a surprise when one considers China and its stance on the decentralized technology.
Meanwhile, China’s self developed blockchain issuance system was presented for the first time – as a technology that will boost the administration and tracking of the two-year bonds with a coupon rate of 3.25%.
Even though the use of blockchain and other features of the issuance contracts directly confronts with the past stance of the country to blockchain, it could definitely align well with the recently revealed strategy and may have many important implications, too. If China considers the trends that have played out since the crypto blackout in 2017, we could see that the country is coming into its own where blockchain is concerned. Therefore, this quick pivot towards ledger technology is not essentially a surprise.
However, everyone should know that the cryptonews in China over the past few years spelled nothing but bans on crypto and blockchain innovations – coming to a degree that matches the country and its zero-tolerance playbook. In 2017, the country banned Bitcoin (BTC) to later shutter exchanges – something that was meant to quell capital fight. After the country shut down ICOs, now China is introducing bonds on blockchain – leaving a lot for us to look forward to in the near future.
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