Beijing to Roll Out New Blockchain System for Fapiao

Beijing’s invoice system is about to get the blockchain treatment, according to an announcement by the city’s Municipal Tax Service (BMTS).

The pilot program is not the first in China, as it comes 12 months after the launch of a similar program in Shenzhen. The Guangdong municipality has now registered more than 10 million blockchain invoices amounting to more than RMB 7 billion, with over 7,000 companies able to access the blockchain invoicing system.

Beijing wants to reproduce that successful rollout up north in the hope that the new system will “reduce taxpayer operating costs, save social resources, facilitate the saving and use of invoices by consumers, and create a healthy and fair tax environment,” according to the BMTS announcement.

Another important use for the system, however, is to cut back on fraudulent fapiao. Using blockchain means that each invoice is traceable, and recipients can easily verify invoice information online through the BMTS website. As Aly Madhavji, managing partner at Blockchain Founders Fund and Blockchain 100 Global Leader as ranked by Lattice80, told the Beijinger, “The fapiao black market in China is massive... The new system significantly reduces the ability to sell and re-sell fapiao while increasing the risk of getting caught.”

Madhavji also believes that the system could be good for businesses and taxpayers as well. “It will likely make filing and reporting quicker over time,” he says, “because the authenticated fapiao would generally be directly linked to each individual business.”

Much like with a typical electronic fapiao, the system also allows users to print a paper copy of the invoice if needed.

The system is yet another example of how, despite waging war on cryptocurrencies, Beijing is becoming a forerunner in the world of blockchain technology. The city is home to dozens of startups that have based themselves around the technology, dealing in everything from crowdfunding to tourism, while on a national level, China’s national blockchain service network, which is designed to strengthen the country’s other blockchain projects, is expected to officially launch next month after a half-year beta testing period.

READ: Beijing's Hotel Business Gets Smacked Down Again, This Time With Quarantine Rules

Images: All Business Templates, Security Info Watch