"A journey of a thousand miles begins with one step:" The well-used proverb can be applied to China's blockchain approach. The phases are taking giant steps, progress in payments and business – and the way businesses do business.
It is no secret that China has struggled with cryptocurrencies. It's been months since the country banned the first offers of coins (ICO). Last month, regulatory authorities raised an alarm about illegal collections of funds made through encrypted. There has even been a ban on advertising, discussion or public presentation, as it were, through social media.
Last week, the country seemed to block access to 124 offshore encryption exchanges. State media have noted that citizenship can not use exchanges.
The tracks, however, could be what remains useful. By track we mean blockchain. This seems to be a bifurcation between cryptids and blockchains in itself, where Beijing wants to bring some cases of use in traditional adoption and where the road – the aforementioned journey – moves away from the cryptosides. Written in large, the embrace descends from the top.
In May, President Xi Jinping said the blockchain remains a "revolutionary" technology. As reported by the CNBC, a manual has also appeared, oriented to the education of government officials on the blockchain. The newswire noted that total blockchain investments from China amounted to $ 3.6 billion in the last two years, according to the numbers published at the end of last week
In the latest blockchain projects, the Industrial and Commercial Bank of China (ICBC) has said – through its president – that the bank will form its views on the development of blockchain projects. This is not a problem between financial companies. The 34-year-old bank is the largest in the country, with coverage of over 500 million individual customers. The company is trying to develop blockchain between a push towards "smart banking", which can help protect financial information as it moves between the parties.
The feeling that blockchain may increase financial services is supported by the April news that ICBC, among the top four in the country, had filed a patent application with the country's intellectual property office. The patent focuses on the authentication of digital certificates and on the storage of data in a secure manner. Credentials are combined with certificates and data is moved to the blockchain. CoinDesk reported that the bank projects a streamlined operating stream in the middle ensuring that the documents are genuine.
This marked the first blockchain project presented at the country's patent office.
It should be noted that blockchain efforts are linked to authentication efforts, not just transactions (ie, what is exchanged). Smart contracts, however, apparently eliminate intermediaries and increase the speed of the process. Thus, we could assume that faster trade leads to better liquidity, and better liquidity is a desired feature of any market.
Besides the patent and the general idea of blockchain as a conductor for (different) cases of use, in terms of business-to-business (B2B), the news came Tuesday (September 4) that People & # 39; s Bank of China (PBoC) is in the "testing" phase of commercial finance done on blockchain. Cointelegraph reported that the test phase has arrived ahead of schedule and focuses on commercial and financial interactions. As noted by the site, citing Shanghai Securities News, the goal is an open commercial and financial ecosystem based on Guangdong, Hong Kong and Macau Bay Area. "
The initiative spans several banks and includes regulatory authentication and oversight efforts. The project, Cointelegraph reported, "will help banks conduct business authenticity audits [s] reduce business costs, improve business efficiency [and] prevent and control business risks."