The Global Times writes, citing a report by the Chinese People’s Liberation Army (PLA), that the blockchain system is unlikely to create financial incentives, but will serve as an innovation strategy for military management.
No financial incentives
The PLA appears to be interested in using a fixed and secure blockchain-based personnel data management system to collect data on military training, career path, missions conducted and performance reports.
The system could be modified to offer non-financial incentives to soldiers. The tokens would serve as “objective assessments,” according to the PLA in its report.
According to the Global Times, an anonymous source familiar with the administration of the PLA has confirmed that the planned blockchain system could also collect important soldier performance data:
“It sounds like a KPI system that gives regular feedback to the troops,” the source said. What the tokens could be used for later is not yet known.
To a certain extent, the collection system described here is reminiscent of the points system for citizens developed in China in 2007.
China’s blockchain strategy
Last week, the official Chinese state Xinhua News Agency published a largely positive and detailed report in which Bitcoin (BTC) is recognized as “the first successful application of blockchain technology”.
While the state media continues to maintain its cautious stance towards speculative excesses associated with trading crypto currencies, the country appears to be reducing its once-strict opposition to activities such as Bitcoin mining. President Xi’s increasing praise of blockchain technology has been accompanied by the passing of a new cryptography law in recent months, which is expected to regulate some aspects of blockchain technology from January 2020.
Meanwhile, the Chinese People’s Bank (PBoC) China is the first major economic power to prepare the introduction of a digital central bank currency.
Whether the coming digital currency will be based on blockchain or work together with blockchains has been the subject of discussions and speculations by important industry representatives in recent weeks.