A District Court in China Trials Blockchain E-Voting for Bankruptcy Case
Blockchain’s integration into a voting system is generating a lot of buzz now. A district court is taking the lead in China to use blockchain to make it easier for creditors of a insolvency company to vote at a creditor’s meeting, the news portal zjol.com.cn reported reported on September 27.
Jianggan District People’s Court of Hangzhou, the capital of China’s eastern Zhejiang province, offered a blockchain-enabled voting system for the first creditors’ meeting of a local hardware market which was held on September 21, allowing more personnel outside the city to take part in voting and to speed up the process.
The voting system runs on the Blockchain Registry Open Platform (BROP) which is launched by the Zhongchao Blockchain Research Institute, a research body under he People’s Bank of China (PBOC) in March. The BROP is dedicated to providing verifiable and supervised ownership registries and information on public services in the country.
Although only 21 creditors attended the meeting in person, roughly 240 creditors were involved in the teleconference through Industrial and Commercial Bank of China’s App which enables them to register and vote online. The voting initiative was launched on September 21 and concluded at 11:am on September 27th. Over 500 creditors cast their ballots via the blockchain-based voting system, which ensures each ballot cast is is encrypted, securely transmitted and is open to the public.
In China, the meeting of creditors refer to the provisional institution that is consisted of creditors who report the claims in accordance with the law during the implementation of the insolvency and restructuring procedures. The creditors’ meeting shall, in accordance with law, vote on matters such as the debtor’s property management plan, a conversion plan of insolvent assets, the creditor’s meeting voting plan, the creditor committee’s rules of procedure, and the creditor committee’s makeup.
Blockchain-empowered creditor’s meeting to creditor conferences has greater advantages and conveniences in terms of space and time than the traditional ones. It guarantees the full exercise of creditors’ right to know, vote and deliberate. More local courts in Zhejiang province are expected to replicate this move to use blockchain in dispute settlements.
on Sept. 18, the Hangzhou Internet Court officially announced the operation of its judicial blockchain technology, making the court the first of its kind to utilize blockchain in the trials of internet-related disputes.