The bank is considering issuing a loan backed by a piece of agricultural land as collateral The Agricultural Bank of China (ABC), one of the world’s largest banks by total assets, has completed the issuance of a loan worth $300,000 using a blockchain system, Financial News reports on Tuesday, July 31. According to FN, the bank tested the technology for the first time in one of its branches in China’s Guizhou province, issuing a loan backed by a piece of agricultural land as collateral. All the transactions are going through blockchain system Bank officials claim that it will support local tea industry. To facilitate the process, the ABC said the blockchain system is deployed across various node partners, including other commercial banks, the provincial branch of the People’s Bank of China and the local government’s Land and Resources Bureau. By having a distributed ledger to keep parties updated with data on borrowers and their collateral, the bank said the tamper-proof blockchain can streamline the manual process of loan approval and eliminate the problem of double spending – borrowers using the same piece of land as collateral to apply for loans from different banks. China continue developing of blockchain technology and the government are planning to implement industry regulations by 2019. |
