A Block Chain Solution For Credit Risk In Agricultural Supply Chain Finance

In recent years,the supply chain finance based on the combination of industry and finance has developed rapidly in China.Supply chain finance not only alleviates the problem of difficult and expensive financing for small and medium-sized enterprises,but also brings opportunities for the innovation and development of commercial Banks.In October 2017,the state council issued the guidance on actively promoting supply chain innovation and application,which emphasized the significance of promoting supply chain innovation and application from the national level.However,it should not be ignored that supply chain finance is confronted with various risks,among which credit risk is the most important one.Compared with other industries,agricultural products have their own particularities.For example,agricultural products are more susceptible to the influence of seasons and natural environment,and their market prices fluctuate greatly.Therefore,supply chain finance of agricultural products needs special research.By analyzing the credit risk problems existing in the supply chain finance of agricultural products and the deficiencies of the existing risk management methods,this paper proposes to use the block chain technology to solve the credit risk problems in the supply chain finance of agricultural products based on the advantages of the block chain technology.This paper believes that blockchain technology can perfectly solve the four problems in the credit risk management of agricultural supply chain finance: the difficulty in controlling the cash flow;The choice between core enterprises and middle and downstream enterprises is difficult;The selection of pledges is difficult;Lack of core enterprise supply chain financing how to proceed.At the same time,this paper also points out that blockchain technology may also cause some new problems to be noted,such as technical instability,over-reliance on the Internet of things.