The Agricultural Bank of China (ABC) has announced the issuance of its first loan on the blockchain.
ABC is owned by the Chinese Government and it is one of the country’s, four big lenders. In a statement issued this week, they announced the issuance of a $300,000 loan that is backed by a piece of agricultural land in the Guizhou province.
The bank intends to ‘build blocks with local people, pilot land and resource bureaus, as well as agriculture and animal husbandry bureaus’ through the blockchain system.
The new project also involves third party participants such as the provincial branch of the People’s Bank of China who is keeping tabs on the project and the validity of the loan data.
Going forward, the bank intends to issue other types of loans over the blockchain with DLT technology helping to avoid situations where a client can use the same piece of land as collateral at different banks.
This latest news is a further indication of the speed in which the country is adopting blockchain technology with the government intending to implement industry-wide blockchain standards by 2019.
Back in May, Li Ming, Director of the Chinese Blockchain Research Office said that a dedicated working group has begun work on a project to identify and implement standards across various industries. The group will be known as the Blockchain and Distributed Accounting Technology Standardisation Committee and their aim is to guide the industry and to help the advance of its development.
Yu Kequn, Director of the National Centre for Information Technology Security Research said that: “The development of blockchain technology may become an important step for China to grasp global technological competition.”
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