China set to announce sharp increase in defence spending
Soldiers of China's People's Liberation Army (PLA) march past Tiananmen Gate during the military parade marking the 70th anniversary of the end of World War Two, in Beijing, China, September 3, 2015 Reuters

The Chinese military is contemplating implementing a blockchain-based rewards scheme to better maintain the data of its entire personnel and also incentivize its workforce, according to a report by the People's Liberation Army (PLA) Daily report.

PLA Daily, which is the Chinese military's official army newspaper, also reported that the proposed blockchain system may end up not entailing any monetary incentives but would be start-off as a reform policy for the effective administration of its massive military.

The Focus Is More On Efficient Military Administration Than Monetary Rewards

The primary objective of the PLA's proposed blockchain system is to better manage the data of the army's close to 3 million personnel, including military training records, mission info, career trajectories, performance records, and more. Beyond this, the PLA could add non-financial incentives in the form of reward tokens for soldiers whose performance is deemed exemplary. However, the People's Liberation Army hasn't made it quite clear as to how its personnel will be able to redeem these tokens and what they can be exchanged for.

China Diving Head First Into Blockchain Technology

Blockchain
Blockchain Pixabay

The PLA's proposition is not surprising as only recently, the Xinhua News Agency (an official state-run news agency) published a report recognizing Bitcoin as the first successful application based on blockchain technology. China has also eased out on its recent clamping down of cryptocurrency mining operations taking place from within the country.

The country's first state-wide law concerning the regulation of cryptocurrencies and blockchain tech, in general, was signed by President Xi recently. The law is expected to come into full effect in January 2020 and has been instituted in a bid to advance the hastened progress of the blockchain technology and to drive the inflow of investments into this sector.

Chinese government officials gathered in Shanghai earlier this month, together with representatives from its central bank as well as other banks, to form a blockchain alliance. The aim of this alliance is to promote and make more productive the country's trade finance transactions and services. After five years of rigorous R&D, China is also expected to launch its own national digital currency, which will be the first of its kind.