Blockchain has become a familiar technology and multiple Chinese banks, interestingly, have claimed the deployment of blockchain applications in 2017.
CEBNet, a Chinese banking news source reported that 12 Chinese banks had disclosed the use of Blockchain for various transaction processes for users in their annual filings. The applications that have been adopted were reported to be used for funds transfer, invoice issues, cross-border loans and also for ID authentication. The major institutions include Bank of China, Agriculture Bank of China and China Construction Bank. Other city level entities also recorded their use of Blockchain applications.
A prime example includes the technology adopted by the Agriculture Bank of China. It has created a decentralised network for the agricultural e-commerce merchants for the issuance of unsecured loans. The special feature that it consists of automatic loan issuance process using Blockchain.
Similar to the previous example, China Construction Bank has also adopted the Blockchain technology to create an automatic process of cross-bank and cross-border loan issuance for small businesses. This platform has reportedly completed transactions of over $251 million.
Bank of China has also come into the game by providing its team with a task of developing a digital e-wallet using blockchain technology for easy-to-transact money solutions.
All these banks’ sudden move to use Blockchain comes at a time when the country’s finance sector heaped praises on the technology stating that there will be a huge improvement especially in the field of loan issuance due to the intervention of Blockchain based technology.
China’s state-owned banks, as reported by CoinDesk, have also been working to develop mechanisms using Blockchain to ease up the problems of data storage and also Certificate authentication processes. The traditional measures are time-taking and the best solution is Blockchain as of now.