The First Blockchain Loan In The Amount Of $ 300,000 Is Issued By The Agricultural Bank Of China
According to the recent announcement of Financialnews.com the Agricultural Bank of China, also known as AgBank, one of the “Big Four” banks in the People’s Republic of China and the third in China in terms of assets, issued a loan in the amount of $ 300,000 in the Chinese province of Guizhou. The technology has been tested for the first time and this became the first blockchain loan issued by the Agricultural Bank of China.
Pursuant to the Bank, blockchain technology is a Tamper-Resistant Security Module (TRSM) that increases the manual approvals workflow activity
of loan applications and also settles the problem of double costs or the borrowers applying the identical real estate as a pledge to secure multiple loans from different credit organizations.
The Agricultural Bank of China indicated that it would like to ensure the farmers and the businesses with higher and more serious access to financial facilities, particularly those who possess agricultural lands or holdings in rural China.
Not only the Agricultural Bank of China uses blockchain technology in lending. Last month, Spain’s largest Bank, BBVA, signed a long-term joint corporate loan of 100 million euros with the construction company ACS using blockchain technology.
At present, 12 banks of China (26 publicly listed banks) have already initiated working on blockchain technology.