China Issuing Bonds on Blockchain Is a Sign of What’s to Come

The Bank of China has recently issued 20 billion Chinese yuan ($2.8 billion) of special bonds, which it has sold in order to fund small and micro-enterprise businesses, according to the China Development Network. 

This recent issuance of $2.8 billion in bonds is nothing to look twice at and was largely expected, given the bank’s inclusive small and micro-enterprise loan balance at 404 billion yuan so far this year — representing an increase of 35.36% since the end of the previous year and catering to nearly 410,000 small and micro-enterprise owners.

However, these bonds weren’t issued the standard way, piquing the interest of market participants the world over. Instead, the Chinese central bank used blockchain to organize the affair, which could be seen as a surprise when one considers China’s stance on the decentralized technology. 

China’s self-developed blockchain issuance system was put on display for the first time and it will handle the administration and tracking…