Bank of China Launches Blockchain Research Initiative to Improve Monitoring

Liu Qiuwan, the Chief Information Officer at Bank of China (one of China’s four largest banks), has announced a plan to spend more on technological research, including research on blockchain. Qiuwan’s announcement came at a press conference earlier this week.

The bank is also interested in funding research on cloud computing, big data, and artificial intelligence. Local news source The Paper reported that the bank plans to spend more than 1 percent of its annual income on the research.

Bank of China May Use Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term to Improve Real-Time Monitoring Systems

The bank’s ultimate goal is to improve its real-time monitoring systems that are in place to manage financial risks. Qiuwan said that blockchain has already been applied in 12 of the bank’s pilot projects, including “data sharing, cross-border payment, digital currency, digital bills.”

“Bank of China has 11 patent applications for blockchain, ranking 20th in the global business and ranking first in the domestic banking industry," he added.

Bank of China’s Hong Kong branch has also been exploring blockchain applications. Cryptovest reported in April that 85 percent of the bank’s real estate valuations utilized blockchain.

While the Chinese government has strictly regulated the use of cryptocurrency within the country, the government has expressed support for blockchain technology.

Chinese Government is Bullish on Blockchain, Bearish on Crypto

“In terms of blockchain technology, China is quite open and welcomes [discussions regarding the blockchain industry],” said Desmond Marshall, head of The Floor Hong Kong, in an exclusive interview with Finance Magnates. “But, of course, if we’re talking about Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term or ICOs, that’s a definite no-no.”

Still, “for any young entrepreneurs or young companies who are thinking ‘okay, should I do this or not?’ I would strongly suggest you look into this,” he said.

Hackernoon reported in May that a number of major firms in China have “committed to the development and adoption of blockchain technology into their operations,” including Alibaba. Out of the 406 international blockchain-related applications that had been filed in China in 2017, 200 came from China.