Bank of Communications, one of the largest banks in China, has made history by issuing securities worth $1 billion using new blockchain technology. Indeed, this is nothing less than a milestone in the field of banking implementing and trusting blockchain more than ever. The breaking news revealed that the bank issued a residential mortgage-based security (RMBSs) to the tune of 9.3 billion yuan (approximately $1.3 billion dollars) using the blockchain based system.
According to Coin Speaker, it is stated that the banks are relying on blockchain because it is an extremely transparent nature. It readily allows various participants to view a real-time information along with conducting due diligence.
The Bank of Communications is the 7th largest bank in the world which has been continuously harnessing this technology within their systems. They have their own proprietary new blockchain technology dubbed as Jucai Chain made to handle security contracts. It was launched in July this year and the bank immediately started moving their data on to it. (Via Finance Magnates)
China: Cryptocurrency And Blockchain Technology
China is clearly against cryptocurrency in general but supports the idea of blockchain and the systems based on it. The country has cracked down and banned ICOs, or initial coin offerings last year. However, some of the major banks such as China Construction Bank, Bank of China and, Agricultural Bank of China readily adopted and started utilizing blockchain at the same time.
The banking regulators in China have openly supported the fact that this technology has the potential to serve as a new way of data sharing more efficiently than ever. The banking sector has begun to understand how revolutionary this technology can be if it is implemented and executed in an apt way. Therefore, more than a dozen banks have started exploring the possibilities of utilizing it in their existing systems. There obviously is a future for new blockchain technology in China but the fate for cryptocurrency remains uncertain.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]