Digital transformation is a national priority for China, and it’s being integrated into both enterprise and banks and other services industries.

According to a Feb. 4 report from Economic Information Daily, chairman of Minsheng Bank Hong Qi said:

“The full adoption of digital technologies such as blockchain is expected to accelerate the digital transformation and upgrade its agriculture, manufacturing, finance and other services in the next 10 years.”

China Minsheng Bank is the first national commercial bank owned principally by non-government enterprises. It is famous for making loans to small and medium-sized enterprises. It is also one of the earliest adopters of blockchain technology in the Chinese banking sector. It has already applied blockchain technology to the two key areas of traditional finance — for­feit­ure and letters of credit.

Bankers in China believe that blockchain will change the core standards of the financial system. It will also have an over­whelm­ing im­pact upon the foun­da­tional sys­tems of the ex­ist­ing bank­ing sys­tem and re­la­tion­ships be­tween par­tic­i­pants.

In December, news broke that the Bank of China had issued 20 billion yuan ($2.8 billion) in bonds to small and medium-sized enterprises using blockchain technology.

Several months ago, Cointelegraph reported that a new, independently-developed blockchain-based smart city identification system was jointly launched by three institutes based in the city of Shijiazhuang in North China’s Hebei Province. Over 10 million blockchain-based invoices were successfully issued in China’s tech capital Shenzhen.