Overview
- China’s tax and financial regulators, in a joint notice Monday, directed banks and regional authorities to standardize bank–tax data sharing using blockchain and privacy computing to widen lending to compliant small businesses.
- The framework routes tax and electronic invoice records to lenders in a common format and uses privacy computing so banks can run checks without viewing raw files, which reduces invoice fraud and shields sensitive business data.
- Officials cite about 400 billion yuan in yearly infrastructure investment to support the rollout, building on 2024 data rules and China’s updated Cybersecurity Law that took effect in January 2026.
- Recent changes to the digital yuan deepen the alignment, with e‑CNY balances now interest‑bearing since January 2026 and the central bank expanding participating banks from 10 to 22 in late March.
- Authorities stress this is administrative tech, not crypto trading, keeping strict curbs from a 2021 ban and February 2026 extensions to stablecoins and tokenized assets, while Hong Kong moves slower after missing a March stablecoin licensing target.