Problems and Optimization of Forest Rights Mortgage Loans in China Using Blockchain

Abstract

Forestry has an important role in Chinese economic development, and the forest rights mortgage loan is an important mechanism to realize the value of forest resources. Its development is a part of the important strategic guidelines of inclusive finance and rural revitalization in China. After decades of development, the forest rights mortgage loan business has been promoted throughout the country. However, it faces obstacles in practice. Blockchain technology is considered as “the most influential revolutionary technology in the next few decades. With its advantages of transparency, traceability, and decentralization, it empowers the rural economy for the development of agricultural product traceability, rural financial services, and land management. We analyzed existing problems during and after the loan and proposed an optimization method from the technical, regulatory, and application perspectives based on blockchain. The method provides a reference for the future development of forest rights mortgage loans in China.