Posted 3 years ago | by Ben Armstrong
While Chinese President Xi Jinping shows his support for blockchain technology, there are 500 blockchain projects that have been registered with the Chinese government since March of this year. The information released from two lists, 197 projects named in March and then 309 in October, means hundreds of enterprise blockchain projects under development in China.
CoinDesk recently talked about numerous enterprise blockchain projects that could change the landscape of the Chinese technology industry, and what the future could hold for blockchain in China's economy.
Blockchain-Based Financial Services for The Middle Kingdom
There are four areas where China seems the most comfortable using blockchain. These areas are trade finance, asset management, cross-border payments, and supply chain financing.
Industrial and Commercial Bank of China (ICBC), the world’s largest bank by assets, and Ping An Bank have set up two blockchain projects each. ICBC Xi Blockchain Service and ICBC Financial Services are blockchain projects that are designed to facilitate transactions for the bank’s clients.
China Construction Bank (CCB), one of the four major Chinese commercial banks, projects included facilitating financial transactions such as factoring and forfeiting and providing immediate cash for exporters in exchange for short-term receivables.
In another encouraging development, the Bank of China completed its first international money transfer to South Korea in dollars via its patented blockchain payment system last year. Chinese banks aren't alone in looking to blockchain for efficient solutions, and many global banks are using the technology in areas like trade finance and settlement.
Baidu, Alibaba, and Tencent
Baidu is the Chinese search engine giant, and they launched a game called Letsdog last August. The project was developed via Baidu’s blockchain subsidiary Duxiaoman, which was featured on the list released last October.
Besides, another two Baidu projects that were included in the March list, and they are Baidu Blockchain Engine and Token.
Alibaba has been especially active, with the most patent applications focused on blockchain-related technologies; a total of 90 projects all in all. Tencent, a father of app WeChat, has built a suite of blockchain services named Tencent Blockchain and Tencent Cloud TBaaS Blockchain.
Union Pay, China’s answer to VISA-Mastercard, was mentioned on the list, with a cross border payment project.
Yifan He, who is the CEO of Beijing Red Date Tech, commented that BSN is already being tested at 55 cities in China, as well as Singapore. It is expected to be more cost-effective than cloud services currently provided by Tencent, Huawei or Alibaba.
There were also many examples that the government is directly using blockchain to offer services, from legal arbitration, to tax collection or in the daily management of a compensation tracking platform for relocated farmers.
More blockchain services like Blockchain Electronic Invoice, for the State Administration of Taxation Shenzhen branch, and Cross-Border Transactions Platform, for the State Administration of Foreign Exchange, are used for other Government services.
Despite its tough stance on cryptos, it looks like blockchain development in China is as healthy as any other geographic region. The stage is set for a revolution in blockchain technology, though the future of decentralized systems is still up in the air.