The Bank of China information manager recently shared details on the bank's blockchain efforts while unveiling plans to increase fintech spending, according to local news
Liu Quiwan said the commercial bank run by State, which is distinct from China's central bank, will increase its investments in a range of fintech instruments for over 1% of its annual operating budget, even if the exact amount is not clear, The Paper has reported last week.
Speaking at a press conference In Beijing, Mr. Liu said that the bank is currently conducting a dozen pilot projects using blockchain, the most well-known system of record keeping behind cryptocurrencies, the report said.
At the end of the year, he added, the bank will have completed a launch of cloud computing, big data and artificial intelligence platforms, according to the report.
International Data Corp. estimates that global business spending on blockchain software will reach $ 2.1 b this year, compared to $ 945 million in 2017, driven by distributors, retailers and manufacturers.
However, the adoption of blockchain in the business world seems to be slower than expected.
Only 1% of 3.138 CIOs in companies in a number of industries claimed to have "any type of blockchain adoption" within their organizations, according to a global survey at the outset of the year of Gartner Inc. While 43% of respondents said that the blockchain was on their radar, 34% said they had no interest "In the test or development, the survey found.
United States Banks have generally lagged behind their counterparts in China regarding the use of blockchain and other disruptive technologies, according to Kevin C. Desouza, professor of business, technology and strategy at the Queensland University School of Management of Technology.
"There is more emphasis from all sectors in China to take advantage of this technology to transform all aspects of civil society," said Desouza, who is also a non-resident senior at the Brookings Institution, at the CIO Journal.
"In the United States, we have not seen a similar intensity in terms of a coordinated effort between the public and private sectors, or the levels of investment in research and development," he added.
JP Morgan Chase & Co. at the beginning of this year presented a prototype of a blockchain platform with the aim of reducing costs and facilitating easier transactions within the capital markets .
J.P. Morgan, Banco Santander S.A. and Bank of New York Mellon Corp., last year joined Microsoft Corp. and other technology giants in forming a consortium to experiment with the use of blockchain in financial markets.