China’s Overreaching Social Credit System Makes Room for Bitcoin to Shine

[MUGNIA]

The Chinese government of today is known for several things, but perhaps one of the most prominent will be its consistent efforts to keep control of its people. By launching several initiatives, Beijing has gone well out of its way to ensure that it has its eyes all over the country.

One of the most ambitious means through which it has achieved this level of control is with a social credit system. Essentially, the government has classified its eligible population based on their social behavior and public records, allotting them social scores that will determine their ability to access loans and other financial benefits.

China’s Social Credit System Becomes Even Less Liberal
The credit system has been implemented in phases since 2009. However, a new update is expected to be rolled out this year, and according to a recent report from XinhuaNet, controls are set to be even tighter going forward.

As XinhuaNet reported at the time, the updated credit system will take factors such as ‘fake’ divorces, defaults on paying bank loans, acquiring multiple loans from several banks at the same time, and much more under consideration when allotting the scores.

However, one of the most important inclusions in this report is the enforcement of penalties on civil rulings. Primitive Ventures founder Dovey Wan explained in a recent tweet that the government conveniently made the definition of civil rulings ambiguous, thus creating a loophole that will enable the administration to restrict people’s access to credit as they please.

more : https://beincrypto.com/chinas-overreaching-social-credit-system-makes-room-bitcoin-shine/