Chinese Banks’ adoption of blockchain systems for payment solutions


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 which has adopted blockchain technology includes most of the major government-owned commercial banks like the Bank of China, China Construction Bank and the Agriculture Bank of China. Privately owned banks like China Merchants Bank and other city-level financial institutions have also started using blockchain technology for different uses.

The blockchain technology-based applications have been used to find solutions for issues like invoices, cross-border loans, and 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 has also revealed that in the bank’s official financial statement that it has introduced a new blockchain-based platform which offers both cross-bank and cross-border loan issuance for small firms and businesses. The China construction bank is also claiming that the blockchain based platform has processed transactions which would be amounting to a total of 1.6 billion yuan, or $2.5 Billion.

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Bank of China has declared that they have finished the testing for the distributed information technology [IT] infrastructure which is to be deployed among their various branches in the country for digitalization and the development of a blockchain-based digital wallet. This is going to be introduced this year.

Shawn lee, a Chinese business man has tweeted:

“Hoping that all banks in china would come to the new age and start adopting blockchain tech.”

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