Blockchain technology is gradually becoming mainstream and whereas many people think it is still very far away from being integrated into large scale commercial projects, that may not be the case entirely. According to a new report released this week, 26 different banks in China claim they deployed blockchain enabled applications in the year 2017 alone. All 26 banks are publicly listed in China.
“12 of the 26 banks stated in their annual timings that their blockchain applications were used for various purposes” according to CEBNET. Of these 12 are Bank of China, China Construction Bank, and Agriculture Bank of China – all of which are state owned banks. Of the private banks that we’re mentioned, there also was China Merchants Bank.
The uses of the applications were from basic tasks such as issuing of invoices to major ones as transacting cross-border loans and ID verification (which is what most blockchain platforms are used for now).
The blockchain application of Agriculture Bank for infants was used to give out loans to merchants of the agricultural e-commerce. The annual filing of the bank stated that these loans had an “automatic loan insurance process”.
China Construction Bank also used it’s blockchain platform application to issue out loans across borders and banks to smaller size businesses. Moreover, the report states that transactions worth $251 million have already been made with the platform.
Bank of China may not have followed the trend of loan giving, but its works are well under way as it has finished tests for an IT infrastructure which will be later used to develop for the development of a blockchain powered electronic wallet.
China is one of the countries whose name has appeared very often within the cryptocurrency circle and anything cryptocurrency related can be found in China – despite the harsh times some cryptocurrency dealers have faced. It is both surprising and not so surprising that there’s an ongoing mass migration into blockchain by banks in the country. On one hand many people still argue that it is “unproven”, on the other hand one can’t risk it to be left out of exploring a revolutionary technology because of someone’s scepticism.
China’s major banks could also be working on using the technology to develop platforms that will help fix data storage problems that banks have been facing, as well as smoothen the processes of certificate authentication.
Join the conversation on Telegram.
Featured Images Courtesy AngelaChao.org
Know more than others on any Blockchain Party!
Join more than 5000 others to receive the breaking news and weekly summaries! No ICO spam, we promise.