Industry experts have said that China is set to lead the way with the use of blockchain as it reinforces the development of digital intelligent services, reports the South China Morning Post.
According to the report, this development is running alongside plans by the country’s telecommunications industry as it works at rolling out 5G mobile services by 2020.
Vijay Mayadas, the vice-president of corporate strategy and head of blockchain strategy at Broadridge Financial Solutions, said to the South China Morning Post, that:
When 5G, the Internet of Things and autonomous driving start to get more prevalent then blockchain could potentially become the underlying ledger to record transactions and maintain trust in those applications.
Even though China has been slower to adopt the technology compared to other countries, it’s certainly making up for lost time. It’s doing this through its banks, which are hiring experts and developers to keep up-to-date with the technology-driven landscape.
Despite housing four of the world’s five largest banks by capital, the Chinese banking system still relies on paper and faxes. However, it is attempting to make the leap to a paperless, secure, auditable, and tamper-proof system through the blockchain as the technology gains pace.
In 2016, 86 percent of companies surveyed in China reported fraud, according to Kroll, a business intelligence firm. As the use of the blockchain gains in popularity for different use cases, Chinese regulators are beginning to see the technology as the ideal solution to stopping fraud.
Other global banks are also turning their attention to exploring blockchain to prevent fraud risk in the $4 trillion trade financing industry.
Not only that, but a survey from IBM, which looked at 200 global banks, found that 34 percent of those surveyed believed that blockchain would occur and ultimately envelop their banking services by 2020.
China’s boost in blockchain applications is highlighted by its increased interest in digital currency.
At the beginning of the year, the People’s Bank of China (PBOC) announced that it had completed a trial run of digital currency based on blockchain technology. According to the report, it revealed how the government plans on setting up the digital payment infrastructure when functional and ready for deployment.
Such a move clearly demonstrates the country’s commitment to staying ahead of competition and the fact that it understands the benefits that the blockchain can produce in the long-term. With its advancements, it’s set to become the global leader in the technology’s usage.
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Last modified: May 21, 2020 10:02 AM