Agricultural Bank of China Proposes Blockchain Technology for Farming Mortgage Loans
According to Chinese news platform, financialnews.com.cn, the country’s largest bank, Agricultural Bank of China (ABC) has invested nearly 2 million yuan into potentially using blockchain technology to better collect and store information.
Established in 1951, ABC has gone from being a state-owned bank to a commercial bank, with its infrastructure repurposed to house joint stocks. As of 2010, the bank was listed on Shanghai’s and Hong Kong’s Stock Exchange. Today, the renowned bank has earned the title of being one of the “Big Four” banks in China. Hence, having such a dominating player consider blockchain and the distributed ledger (DLT) is surely a big move.
The effort in place is said to be effective at the Guizhou Branch, as an attempt to remain updated on matters including information on borrowers and their respective collateral and traceability of loan processes. Most importantly, the blockchain tech will be used to eliminate a common concern, which is double spending – preventing land owners from placing their piece of land as collateral more than once. Ultimately, saving time, preventing trickery and opening doors to farmers in rural China.
As per Coin Desk, to put all the plans into action, the ABC will be joining forces with other Chinese establishments, which comprise of commercial banks, People’s Bank of China and government-established, Land and Resources Bureau.
This could mean big things for China in the prospect, as the ABC plans to enrich their implementation of blockchain into the trading of diverse asset groups, possibly including the likes of the realtor sector.