The Bank of China has issued $2.8B for Small and Medium Enterprises(SME) utilizing blockchain technology amidst the broad adoption of technology in the country.

‘Bank of China,’ one of the four largest commercial banks in the country, has provided 20 billion yuan ($2.8 billion) to SME’s in blockchain-based bonds. The issuance has a 2-year 3.5% coupon rate, the yearly interest rate of a bond, a statement read.

The bond itself has been issued through the Bank of China’s blockchain-based system, and the bank alleges that this marks the very first bond transaction done in the country using this emerging innovation. This massive plan is part of China’s rapid blockchain adoption that was put in overdrive by Chinese president’ Xi Jinping’ in late October.

China is preparing to grow its blockchain initiatives to 65.7% yearly that will reach its peak in 2023. By then, technology is projected to surpass more than $2 billion.

‘Forkast Insights‘ published a comprehensive report last week, revealing just how fast blockchain is maturing in the country. From the development of its own central bank digital currency to how blockchain itself is transforming the lives of Chinese citizens, the report dives deep into China’s ambition to lead the crypto race.

Notwithstanding these blockchain initiatives, however, China is cracking down obstinately on cryptocurrency and crypto exchanges in the country. Authorities have been shutting down exchanges in a bid to defend itself from the illegal activities brought by the industry, including, but not restricted to, terrorist financing and money laundering. Indeed, even the famous Ethereum block explorer ‘Etherscan.io’ has now been reviewed by the country’s Great Firewall.

China dominating the crypto race

These substantial restrictions aren’t all that unexpected given that the unauthorized crypto market is considered the third biggest black industry in the country, with an expected value of $15 billion.

Also important is the fact that of the thousands of blockchain-focused companies that have germinated following China’s blockchain adoption, only 4,000 are concentrating their efforts on pure blockchain initiatives. Meantime, 25,000 firms have attempted to issue their cryptocurrency, a movement that is the opposite of what China is trying to achieve.

Notwithstanding these problems, China is still commanding the crypto race. Last year, China’s blockchain initiatives valued for 25% of overall projects in the sector globally.