China’s involvement with blockchain technology is growing larger by the day. Now, reports indicate that the Agricultural Bank of China (ABC), which is one of the top 4 biggest banks in the country, has used blockchain technology to issue a loan worth $300,000.
A Multi-Node Blockchain System
The blockchain issuance system used for the loan works via several nodes belonging to the People’s Bank of China, and the Chinese Government Land and Resources Bureau.
According to the ABC, blockchain technology has great potential on the loan market. The process associated with approving loans becomes more streamlined, as all parties are kept updated in real-time with data referring to borrower identity and collateral. The bank also believes that blockchain technology can reduce the likelihood of people using the same land as collateral, in order to apply for loans at different banks.
Once the system becomes robust, the Agricultural Bank of China plans to accept other types of collateral, apart from agricultural land.
The blockchain-based loan issuance system is part of the ABC’s three-year fintech innovation action plan. With this in mind, in the future, the bank plans to invest into other technologies such as mobile internet, big data, information security, cloud computing, artificial intelligence and more.
Based on everything that has been outlined so far, what do you think about China’s growing interest in blockchain technology? Let us know your thoughts in the comment section.
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