Blockchain-Based Invoices Reached $1 Billion USD in China with 10 Million Invoices
Geoffrey Gardiner Nov 01, 2019 03:55
Shenzhen’s pilot blockchain technology invoice system has reached a new milestone. The program known as ‘fapiao’ which allows the Chinese government to track purchases and prevent tax evasion, has just issued its 10 millionth invoice.
Shenzhen’s pilot blockchain technology invoice system has reached a new milestone. The program known as ‘fapiao’ which allows the Chinese government to track purchases and prevent tax evasion, has just issued its 10 millionth invoice.
This comes from over 7,500 companies using the e-invoice system to date. The program has now been active for over 15 months, and growth is seen in major sectors including transport, catering, parking, retail and internet services. These sectors make up some of the 100+ sectors involved.
Shenzhen issued its first e-invoice in August 2018, totaling an aggregate invoice amount of almost $1 billion USD to date.
With China ramping up more blockchain services and transitioning the technology into business, fapiao may just be the roll-out needed for all other Chinese cities. Based on the 15 months the program has been running, it seems that many sectors have been able to adapt and benefit from the system.
Tencent, a major company in the crypto space, has also been given the green light to issue similar invoices. This shows that the Chinese Tax Bureau is open to the adoption and usage of more companies following the e-system.
Leveraging blockchain, China’s main aim is to combat fraud including fake receipts, that has been a problem coming from specialized sellers looking to make fast money.
China will continue to implement control features, showing how governments can leverage distributed ledger technology to fight against criminal activity.
Image via Shutterstock
Image source: Shutterstock
