China has signed a deal to incorporate blockchain-based financing as part of its drive to replace conventional buses with electric by 2021.
U.S. technology firm Seven Stars Cloud Group (SSC) announced it had entered a deal with China’s largest electric bus operator to provide finance services using blockchain technology August 20.
In a press release, NASDAQ-traded SSC said its partnership with the National Transportation Capacity Co Ltd (NTS) would run for three years and was worth $24 billion.
Part of China’s ongoing interest in electric public transport overhauls, the government plans to replace all traditional buses with electric vehicles as soon as 2021.
SSC will specifically provide “fixed income lease financing-based products” through its regulated network, which will in turn provide NTS with regulatory-compliant blockchain finance products.
The operator’s president Jihong Huang said the plans would result in a “significant transformation of the entire lease financing-based fixed income market” through the use of blockchain and artificial intelligence (AI).
“It represents a new era and a paradigm shift in the way in which we view asset-based financial products,” Bruno Wu, chairman and CEO added.
Blockchain integration meanwhile continues apace at the top level of many of China’s economic spheres. From blockchain payment systems exploration by Bank of China and UnionPay to tax invoices, this month alone has seen major announcements from both the state and private sectors.
“Each of the leading ten bus manufacturers in China strongly back NTS in this initiative, and the success of this transaction with SSC will place asset-backed digital offerings firmly on the map,” Huang added.
The value of the entire electric vehicle replacement project meanwhile totals a giant 1 trillion yuan ($45 billion).
