China Merchants Bank successfully issues blockchain-based electronic invoice

China Merchants Bank (CMB) has announced that it has become the first bank in China to issue blockchain-based electronic invoice.

In its official release dated November 1, the bank said that blockchain technology enables of complete end-to-end traceability, makes information non-tamperable, help avoid false invoices and improve the invoice supervision process.

CMB explained that the blockchain electronic invoice will connect each stakeholder to facilitate the traceability of the source, authenticity and reimbursement of the invoice. It will help address a number of issues that plague existing processes including false declaration and over-reporting of one vote and can significantly reduce operating costs and tax risks.

“With its keen insight into financial technology innovation, China Merchants Bank actively participated in the pilot project of electronic invoices in the blockchain of Shenzhen Taxation Bureau,” the press release said (loosely translated).

Once the development of the blockchain electronic invoicing system was complete, it was connected to the blockchain platform of the Shenzhen Taxation Bureau to provide customers with a new experience of issuing blockchain electronic invoice.

“At the same time, China Merchants Bank, as the direct link institution of the Shenzhen Taxation Bureau blockchain platform, can also provide blockchain electronic invoice agent access services for other enterprises,” it added.

CMB said that it has been actively exploring applications of blockchain technology in a number of areas such as cross-border payment, ABS, and bill transfer.