BY CNA team - July 31, 2018
China’s AgBank uses blockchain to transact loan
A Chinese state-owned bank, the Agricultural Bank of China (AgBank), has used blockchain technology to complete the issuance of a loan worth US$300,000.
Financial News, a Chinese online business news site, reported that the bank’s Zunyi branch located in Guizhou province used the technology to issue a loan with a plot of agricultural land as collateral.
The online news site noted that this is the first farmland mortgage loan based on blockchain technology to be issued by the National Agricultural Bank System.
Blockchain technology is being used by AgBank to issue loans for agricultural land in a pilot project covering 10 counties.
“The system fully utilizes blockchain technology such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm,” Financial News says.
AgBank is listed in both Shanghai and Hong Kong. It is the world’s third largest bank with US$2.82 trillion in assets and almost 24,000 branches.
According to CoinDesk, 12 Chinese banks shared in their annual reports that they deployed blockchain technology last year.
The People’s Bank of China also recently announced filing a blockchain patent for a digital currency wallet. The Chinese central bank has so far filed some 40 blockchain-related patents linked to a digital currency project.