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Almost half of the major banks in the Republic of China has adopted the Blockchain technology in the last year. Out of the 26 banks which are publicly listed in China, 12 banks have come forward by disclosing the annual filings that they have adopted blockchain applications for various uses over last one year.
The 12 financial institutions include – Bank of China, Construction Bank of China, Agriculture Bank of China, China Merchant Bank, Guiyang Bank, the famous Sanjiacheng City Commercial Bank and five other national joint-stock banks.
The applications that have been adopted range from using blockchain technology to issue invoices and cross-border loans to ID authentication processes.
According to the annual report which was filed by the Agriculture Bank of China which is a government-owned bank, it has been able to develop a decentralized network which would offer unsecured loans for agriculture, various e-commerce merchants and other customers of the respected bank. Blockchain technology provides the bank to offer an automatic loan issuance procedure which is a simpler option for the banks and the customers.
China Construction Bank, for instance, processed transactions that worth a total of 1.6 billion yuan, ($251m) using a newly launched blockchain application that provides cross-border loan issuance service to start-ups and small businesses.
Taking another approach, Bank of China said that it has completed testing for a distributed IT infrastructure to be deployed across its branches for further development of a blockchain-based digital wallet.
The Agriculture Bank of China, on the one hand, has built a blockchain based network that offers unsecured loans for agricultural e-commerce merchants on the principle of automatic issuance of a loan to compliant individuals on the network.
It has already reported that state-owned banks are currently exploring ways to implement Blockchain Technology in solving data storage issues and also streamline the process of certificate authentication.
With the first quarter of 2018 gone, there are reasons to believe that new applications for blockchain technology will be discovered, tested and implemented to further secure banking processes in the Chinese Fintech industry.