Deployment of Blockchain Technology on the Banking Industry in China: A Policy Review Study
Keywords:
blockchain, China, the banking industry, policy review, application, finance, settlement, ICBCAbstract
This paper focuses on exploring the development of BC in the banking industry in China. Due to the Great Firewall and policy factors, the development of blockchain in China has not been synchronous with the rest of the world. However, China has been gradually researching the application of blockchain in the banking sector. To investigate the factors that have led to a faster pace of development in blockchain in the banking industry in the past five years, this paper employs the methods of policy review and case study. The analysis findings indicate that blockchain in the banking industry in China is currently primarily applied in six major modules: supply chain financing, cross-border financing, cross-border settlement, identity verification (KYC), fraud prevention and security, and digital currency. The driving factors behind the development of blockchain in the Chinese banking industry are mainly twofold: the encouragement and guidance of government policies and meeting the needs of the banking business model to enhance the quality of its assets and maintain social productivity.
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