Bankers in China Believe Blockchain Tech Necessary for Economy

Bankers in China Believe Blockchain Tech Necessary for Economy

Bankers in China believe blockchain technology will boost the national financial system.

Hong Qi, chairman of Minsheng Bank, said the adoption of such state-of-the art technology is a top priority for China, and thus it should integrate into the banking and services sectors.

The Chairman also said:

“The full adoption of digital technologies such as blockchain is expected to accelerate the digital transformation and upgrade its agriculture, manufacturing, finance and other services in the next 10 years.”

Bankers in China also believe this topnotch technology will change the digital transformation in the country.

Minsheng is the first commercial bank in China to be operated by private enterprises. It offers for loans to small and medium-sized enterprises. In addition, it is one of the first Chinese banks to adopt the blockchain technology.

Blockchain widely used in China

Cryptolydian earlier reported that China widely uses Blockchain technology, thanks to President Xi Jinping’s support to the technology.

The number of companies using blockchain technologies reached 33,000 until the end of 2019, according to the data of China Blockchain Enterprise Development Research.

Blockchain-centric startups represent almost 57% of the total number, publicly-traded companies (28%), internet companies with blockchain business (23%), and financial institutions with blockchain projects (12%), according to the report.

In addition, more than 50% of these companies had 1 million yuan ($143,426) in capital at the time of establishment and registration.

PBoC makes progress on digital currency project

The People’s Bank of China (PBoC), the country’s central bank, has announced completing the “top-level” design of its new digital currency dubbed as Digital Currency Electronic Payment “DCEP”, in a smooth progress to adopt a digital currency.

In a recent paper, the central bank said, “The top-level design, standard formulation, functional research and development have been completed.”

Most importantly, the bank said work on the state-backed digital currency is progressing smoothly. “We will continue to steadily advance the development of legal digital currencies in 2020.”

However, PBoC has not unveiled the launch date of its new digital currency.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.