China, Beijing, April 6, 2026 - Chinese regulators have taken a decisive step toward the digital modernization of the financial system. According to a joint decree by the State Administration of Taxation and the General Administration of Financial Regulation, banks are required to use blockchain technology to expand access to credit for small businesses.
The new initiative is based on an updated model of "bank-tax interaction." Previously, banks relied on standard tax statements. Now, regulators are mandating the use of blockchain and privacy computing technology.
This creates a register of financial and tax data that is visible to both the tax authority and the bank, but which cannot be tampered with unilaterally. For small businesses, this means eliminating lengthy tax returns, and banks gain instant access to verified tax payment records.
Regulators have set specific objectives:
1. Improve the volume and quality of lending through the creation of a "tax trail" in blockchain. 2. Reduce application approval time from weeks to 24-48 hours.
Particular attention is given to small businesses that have never taken out loans but regularly pay taxes.
Place in China's Global Strategy
This measure is not an isolated experiment, but part of a broader government strategy to integrate blockchain into the national data infrastructure. According to the roadmap, full-scale implementation of the system is scheduled for completion by 2029.
The expected annual investment in this area is estimated at 400 billion yuan (approximately $55 billion). Part of the funds will be used to create blockchain network nodes, data centers, and staff training.
It is important to emphasize that China maintains a strict policy towards cryptocurrencies. Transactions in Bitcoin, Ethereum, and other coins, as well as mining, remain completely prohibited. The issuance of stablecoins and tokenized assets is strictly controlled in China. Blockchain as an accounting technology is approved, but cryptocurrencies as speculative instruments are not.
For entrepreneurs, this means transparency. If a person pays their taxes regularly, a bank cannot reject them "due to a lack of credit history." Blockchain automatically confirms their integrity. The first projects in Zhejiang and Guangdong provinces have already shown a 35% increase in approved applications for small amounts (up to 1 million yuan).
Conclusion
China continues to move along the path of "regulated digitalization." The use of blockchain for small business lending is becoming a mandatory standard, not an option. For millions of small businesses, this opens access to cheap and fast money. For the market, this is the world's largest experiment in implementing blockchain in public financial infrastructure.
Source: Joint Decree of the State Administration of Taxation and the General Administration of Financial Regulation of the People's Republic of China, April 2026.