The Agricultural Bank of China (ABC), the fourth largest bank in China, has issued its first loan based on the blockchain, according to a July 31st report by the local news channel Financial News.
Agricultural Bank of China (ABC) had granted a loan via the blockchain technology
ABC, one of China’s leading credit institutions, announced that it had issued a credit of around $300,000, guaranteed by a piece of agricultural land in the province of Guizhou.
According to Financial News, the bank will bring together “local people, resource offices as well as agriculture and livestock offices” through the blockchain system, adding that the loan “will support the local tea industry.”
The ABC’s blockchain project received the participation of third parties, including the provincial branch of the Chinese People’s Bank, which acted as nodes for verifying the validity of credit data.
More blockchain-based loans to be granted in the future, according to ABC
In the future, as the bank says, other types of loans will be under the auspices of the blockchain technology, with decentralized ledger technology enabling ABC to prevent the issuance of customers applying for loans from different banks using the same property as a guarantee.
Accordingly, more blockchain technology-based loans would be granted in the future, as the distributed ledger technology wins more and more ground in China.
The Chinese government and local FinTech companies work on IoT and blockchain technology standardization
China continues to deploy blockchain technology at a significant pace, and the government plans to introduce industry-wide standards next year.
In July, China’s Joint Technical Committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) announced that they would lead an international research group on standardization of the Internet of Things (IoT) and blockchain technology.
Be it as it may, China is making huge leaps towards becoming a blockchain nation, although cryptocurrencies are still considered high-risk assets for the Chinese economy.
Jackson Bey was born and raised in Lethbridge Alberta but moved east when he was 22. Apart from running his own consulting firm. Jackson spends his time canoeing the many lakes of Ontario. As a financial journalist Jackson has published stories for CBC Business Online, as well as Buzz Feed and Motherboard. As a contributor to Billionaire 365, Jackson mostly covers markets and trade.