Agricultural Bank of China has announced that it issued its first loan on Blockchain. According to the bank, this project will prevent the issue of clients applying for loads at different banks using the same piece of land as collateral.
31 July, AtoZ Markets – The fourth largest bank in the world in terms of assets, the Agricultural Bank of China (ABC), has reportedly issued its first loan on Blockchain.
Agricultural Bank of China Issues First Loan on Blockchain
According to local news outlets, the Chinese governmental bank ABC has announced it issued a loan worth approximately $300,000 backed by a piece of agricultural land in the Guizhou province. Specifically, one of the “Big Four” Chinese lenders will “buil[d] blocks with local people, pilot land and resources bureaus, and agriculture and animal husbandry bureaus,” through the blockchain system, adding that the loan aimed to “support the local tea industry.”
The Blockchain project has seen some support from third parties. These include the provincial division of the People’s Bank of China (PBoC). These participants will reportedly be acting as nodes to monitor the validity of load data.
In the future, the bank plans to issue other types of loans with the support from Blockchain. According to ABC, the decentralized ledger technology enables the bank to prevent the issue of clients applying for loads at different banks using the same piece of land as collateral.
China Blockchain Adoption
China carries on with adopting Blockchain technology at a rapid pace. The government is planning to deploy industry-wide regulations already next year.
This July, Chinese technical committee of the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) have revealed they would take part in an international research group on the standardization of the Internet of Things (IoT) and Blockchain technology.
Back in June, China Banking Regulatory Commission (CBRC) has published a working paper that has suggested the issuance of the licenses for cryptocurrency related businesses by the local regulators. The paper has been entitled “The Study of Development and Regulations on Distributed Ledger Accounts, Blockchain, and Digital Currency.” The paper is authorized by the researchers from CBRC, Li Wenhong, and Jiang Zeshen.
It is focused on the regulatory studies on cryptocurrency. The document talks about a number of legal efforts made by different nations globally to govern businesses related to the cryptocurrency derivative trading
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