- China has urged banks and local authorities to use blockchain for lending and secure data sharing.
- Authorities seek transparency, efficiency, and privacy computing in “silver-tax interaction.”
- Banks could pilot blockchain systems in line with China’s $58B plan for blockchain infrastructure.
China has urged banks and local authorities to adopt blockchain technology to improve lending and enable secure data sharing. The move focuses on boosting transparency, improving efficiency, and strengthening privacy-protected financial data exchange.
The guidance comes as China accelerates development of its national data infrastructure while separating regulated blockchain innovation from crypto speculation.
China Pushes Blockchain for “Bank-Tax Interaction”
On April 5, 2026, the State Administration of Taxation and the National Financial Regulatory Administration jointly issued new guidelines titled “Further Deepening and Standardizing Bank-Tax Interaction Work.”
The notice encourages tax authorities and banks to use blockchain, privacy computing, and other technologies to improve data sharing in a compliant manner. The goal is to enhance lending services, especially for small and medium-sized businesses.
The initiative aligns with China’s broader National Data Infrastructure Construction Guidelines released in January 2025. These guidelines identify blockchain and privacy-preserving technologies as key tools for secure and traceable data circulation across government and financial systems.
Officials say this infrastructure will help mobilize large-scale investment while improving trusted data exchange nationwide.
Why China Is Expanding Blockchain Use
China’s leaders launched this blockchain push after the Third Plenary Session of the 20th Central Committee in July 2024 explicitly called for the construction and operation of a national data infrastructure to boost data sharing and circulation. Officials treat data as a core production factor. They recognize that massive data volumes demand secure tools like blockchain to unlock value safely.
China generated 41.06 ZB of data in 2024, a 25% increase from the previous year, according to the National Data Resource Survey Report (2024) released by the National Data Administration. The report explicitly projects that national data production will exceed 50 ZB in 2025.
This explosive growth, combined with over 400,000 data-related enterprises by the end of 2024, creates urgent needs for privacy-preserving computation and trusted data spaces. Blockchain can solve complex data-flow problems, reduce costs, and build an orderly ecosystem.
What’s Next?
These guidelines establish a clear, phased timeline that includes completing top-level design and expanded pilot programs by 2026, achieving large-scale, trusted data circulation patterns across major cities by 2028, and building the main national framework by 2029.
Notably, the related projects are estimated to attract approximately 400 billion yuan ($54.5 billion) in direct annual investment, driving a total scale of roughly 2 trillion yuan over the next five years.
By securely sharing privacy-protected tax data on a blockchain platform, banks could gain a clearer, real-time view of an enterprise’s operational health and repayment ability. This “data-as-credit” approach lowers lending risks, automates credit assessments, and broadens financing channels for smaller firms, directly addressing long-standing financing gaps.
Related: China’s Supreme Court Targets Crypto-Related Money Laundering Networks
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