Province looks to new trend in digital banking
Relying on big data and blockchain technology, Guiyang Data Investment Bank, a subsidiary of Zhongguancun Shuhai Data Capital Rating Center, is the first service provider in China to carry out data assets investment in the financial industry, said its senior executives.
“As everyone knows, the blockchain has become one of the most discussed topics in both the technology and financial industries,” said Qin He, president of the bank.
“It can perfectly tackle information asymmetry, high transaction costs and trust crises among strangers in economic development.”
Blockchain is an open and distributed digital ledger that can record transactions between two parties in a decentralized manner. Bitcoin became its core component after it was implemented by Satoshi Nakamoto in 2008.
Nowadays, the blockchain has been adopted broadly in financial and business sectors for its innate advantages.
“In the process of data asset investment, we apply blockchain technology to all aspects of business registration, such as the registration chain, evaluation chain, security chain and investment chain,” Qin said.
Last July, Guiyang Data Investment Bank carried out data investment on the Zhongjianyun project of Beijing Yuxun Technology and obtained a 15 percent stake of the project.
Qin said that the application of blockchain technology to the financial field will change the transaction process and record-keeping, thereby greatly reducing transaction costs and improving efficiency.
In the fields of digital currency, cross-border payment, issuance and trading of securities, property transactions and protecting against money laundering, it has a variety of application scenarios.
“Therefore, you can say the blockchain is expected to change the fundamental rules of the financial system,” Qin said.
“In the beginning of our company, Guiyang’s government gave strong support in policy and in the company’s business, making our company successful base in Guiyang, and allowing us to complete the first asset investment data service,” Qin added.
Luo Jialing, director of the financial department of the Guiyang city government, said the application of the blockchain to the financial sector can effectively encourage the development of internet banking business in Guiyang and could better serve small enterprises and the real economy, laying the foundation for a truly inclusive financial environment.
She said that in the following five years, Guiyang aims to explore a number of blockchain applications to foster related innovations and enterprises, building up Guiyang as a blockchain innovation and demonstration center.
Guiyang will innovate its existing financing model to support blockchain enterprises.
The first phase will involve a 100 million yuan ($14.5 million) investment in blockchain technology as a financial fund for related enterprises’ innovation to create a robust financial environment for them, Luo added.