PBOC uses blockchain technology to combat money laundering

Author: Brian Yap | Published: 14 Feb 2017

China is poised to join the ranks of countries with their own sovereign-backed digital currency platforms, with this new medium expected to be leveraged to combat money laundering and tax transparency issues.

The People’s Bank of China (PBOC) successfully completed a test application of a blockchain-supported digital currency developed on transactions and settlements of bank acceptance bills on December 15 2016. The central bank has also announced plans to launch a digital currency research institute to develop big data systems, cryptography and blockchain technology.   


"A centrally-managed digital currency is a great medium to address money laundering because there is real-time name and date on all transactions taking place"


However, the PBOC’s crackdown on tax evasion and money laundering are the likeliest motivations for the central bank’s digital currency initiative.

"A centrally-managed digital currency is a great medium to address those issues because there will be...


 

 

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