China remains bullish on its perspective that blockchain is the future. In response to this confidence, the Agricultural Bank of China (ABC), the fourth-largest bank in the world based on sheer assets alone, have granted a loan on the blockchain, Coin Telegraph reports.
For some, blockchain is still an unexplored technology and, by this virtue, not to be trusted fully yet. The idea of data containing sensitive information is a nightmare to some after hackers gaining such sensitive information without difficulty made the news.
The ABC is owned by the state and is grouped among the "Big Four"-Chinese banks that grant big loans. The loan it granted blockchain is around $300,000 and is the worth of a prime piece of land found in the Guizhou province. The piece of blockchain that it aims to support has connections with the local tea industry.
It is also a way to grant loans to blockchain-related processes in the future. According to CCN, the loan is part of something called the "E-Blockchain Loan", a process created for loans concerning blockchain and cryptocurrency. In this process, blockchain loaners will be able to get approved at half or even a fourth of the time it takes to get the loans.
This is also created to make it easier for loaners' data to be saved in the bank's system. It could be used to verify the background of the institutions or companies getting the loan. It will also help the bank verify whether there is something as collateral to back the loan.
ABC isn't just doing this for one transaction. Other transactions will also get the same process applied to them, pending the initial loan. While ABC usually deals with the rural land as collateral, very soon the bank will allow blockchain or data loaners to use another form of collateral-real estate or properties, for instance.
The Hangzhou-based HyperChain was reported to be involved in this project. With blockchain being their expertise, it's no surprise that the bank came to them for help.
