China explores blockchain to safeguard citizen data and enhance credit system integrity

The Chinese government is considering integrating blockchain to enhance the security of its credit information systems, according to a report from STCN.

The move is part of a broader effort by the National Development and Reform Commission (NDRC) to apply emerging technologies in improving data-sharing practices and safeguarding sensitive information.

Li Chunlin, Deputy Director of the NDRC, stated that the commission has already begun incorporating privacy computing solutions.

These tools are designed to minimize the risk of information leaks by processing data in a secure environment. He emphasized that the overarching goal is to reinforce the protection of citizens’ data through advanced technical infrastructure.

Blockchain is now also being explored as a core component of this initiative.

The technology would enable secure data encryption and improve traceability by linking essential credit information directly to the blockchain network, ensuring greater integrity and flexibility in data management processes.

Government operations increasingly embrace blockchain technology

China’s pivot toward blockchain for credit data security reflects a global trend of governments adopting the technology for non-financial applications.

Blockchain technology’s decentralized nature reduces reliance on single servers, which often serve as weak points in traditional systems.

Prominent figures in the crypto industry, including Binance’s former CEO Changpeng Zhao and Coinbase’s CEO Brian Armstrong, have long advocated for blockchain’s potential to provide real-time transparency and oversight in complex systems.

Zhao said:

“All governments should track all their spending on the blockchain, an immutable public ledger. It’s called ‘public spending’ for a reason.”

Meanwhile, this growing interest isn’t limited to China.

A leaked memo recently suggested that the US government is considering using blockchain to revamp the United States Agency for International Development (USAID). The proposed shift aims to streamline aid distribution and improve operational efficiency.

There are also reports that the Department of Government Efficiency (DOGE), led by Elon Musk, is assessing blockchain for public sector use. Experts believe it could improve budgeting, data protection, digital payments, and property management.

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