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Amid an ongoing ban on digital currency trading and mining, China remains firm that blockchain is a critical “breakthrough” for innovation, urging traditional financial (TradFi) institutions to integrate the technology to improve credit facilities and data transparency. Meanwhile, in Sweden, authorities issued a warning to citizens about the potential collapse of electronic financial service systems as economies advance their digitalization, noting the need to keep sufficient physical cash on hand.
Following through with Chinese President Xi Jinping’s statement in October 2019 about accelerating the development of blockchain-based applications and their integration in critical industries, the State Administration of Taxation (STA) and the National Financial Regulatory Administration (NFRA) last week encouraged banks and local authorities to utilize blockchain technology in promoting “bank-tax interaction.”
In a policy statement seen ;by Cointelegraph, the state agencies noted that integrating blockchain would help standardize data sharing between tax agencies, banks, and businesses, allowing them to address information gaps that often limit lending. This would not only reduce “information asymmetry,” but make it easier for small- and medium-sized enterprises (SMEs) to access financing.
The directive reflects a broader national strategy to embed blockchain at the core of China’s digital infrastructure, signaling how serious policymakers view the technology’s role in economic modernization.
In January 2025, China’s National Development and Reform Commission published a roadmap, which entails utilizing blockchain infrastructure as part of its data governance strategy.
Under the National Data Infrastructure Construction Guidelines, the nation is set to embark on the development of a data network that has the potential to be one of the largest globally, powered by blockchain technology.
Earlier this year, National Data Administration Deputy Director Shen Zhulin projected China’s data infrastructure could attract an estimated 400 billion yuan (about $58 billion) in annual investment, highlighting the scale of resources being mobilized behind the initiative.
Danger in fintech reliance
On the other side of the globe, Sweden, touted as one of the world’s most advanced economies in the field of electronic financial services, has cautioned citizens of becoming fully reliant on digital banks and electronic money.
Swedish authorities said that while the country forges ahead with its digital transformation, the progress comes without a risk, noting that it increases the dangers of cyberattacks, which were reported to have ballooned over the past two years in Europe.
Financial institutions are being urged to ramp up their security measures, while citizens are being encouraged to hold cash—not to encourage paper transactions, but as a backup for worst-case scenario of electronic system outages or hacks.
Sweden’s warning highlights a rising unease among advanced economies about becoming too dependent on financial technology.
Recently, there has been a growing concern among policymakers of a major cyber incident happening, which could ripple quickly across interconnected systems and lead to financial instability not just in Sweden but across the Eurozone and beyond.
Sweden’s stance is now being closely watched, with analysts suggesting it may set a precedent for how other countries approach risk management.
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