China Turns Its Attention Towards Blockchain

China Turns Its Attention Towards Blockchain

China`s leading banks are hiring blockchain experts in line with government`s plans to explore the possible applications of the blockchain techology,

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China`s leading banks are hiring blockchain experts in line with government`s plans to explore the possible applications of the blockchain techology, reported Reuters (reuters.com).

Chinese banks have struggled with outdated technology as many still use paper, faxes and chop stamps to verify documents, explained Reuters.

While four Chinese banks rank among the world`s biggest by capital, they fall behind in terms of technological funding. The decision comes in response to blockchain investments of $1.5 billion that were made by their Western counterparts.

Speaking to Reuters, Steven Shen, a senior manager at executive search firm Robert Walters in Shanghai has said: “Banks including Ping An Bank (000001.SZ) and Bank of China (601988.SS) have unveiled blockchain investments and projects, and around ten banks are looking to hire some 30 blockchain professionals”.

Banks are testing the potential uses of blockchain, some of them including know-your-client documentation, trade finance transactions, payments, and asset custody, wrote Reuters.

For example, the top financial regulator in the country, People`s Bank of China has showed support for researching the technology.

At the same time, financial conglomerate Ping An has built a core blockchain team of around 35 people at group level over the past years. The team is responsible for looking in initiatives for asset registries, credits, payments and digital currencies, as Daniel Tu, group chief innovation officer at Ping An Insurance, explained before Reuters.

“China is really interested in blockchain,” said Brian Behlendorf, executive director of the Hyperledger Project, one of the biggest global blockchain projects, and a former technology adviser to the White House in an interview with Reuters. “They’re looking at this as a leapfrog technology. Can you take a very backward, very paper based market, and reinvent that using blockchain?”

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