The Agricultural Bank of China (ABC), one of the largest banks in the world for total assets, granted a loan in the amount of 300 thousand dollars, using the blockchain system.
According to local news source, the Bank used this technology for the first time in one of its own branches in Guizhou province. The loan was granted on the security of agricultural land. To simplify this process, ABC is going to use blockchain technology for communication between commercial banks, branches of people's Bank of China, in the province and land and resource bureaus of local governments.
Thanks to the remote accounting data on borrowers will be promptly updated in all instances. The blockchain protection system will simplify the process of confirming loans, and will prevent borrowers from using the same land plots to take loans from different banks.
The use of blockchain technology is one of ABC's attempts to facilitate access to credit for farmers and businesses owning agricultural land in rural China. The Bank plans to issue loans secured by other assets, such as real estate in future.
It is noteworthy that the Agricultural Bank of China is not the only commercial organization that evaluates the benefits of the blockchain. To date, 12 of the 26 Chinese banks have already started to work with this technology.