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Bank of China will be first to use blockchain network for property buyers

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Bank of China Joins New Blockchain Platform for Property Buyers Cypto Heroes

The Bank of China will become the first bank to use a blockchain network platform for property buyers, jointly developed by property development firm New World Development and the Hong Kong Applied Science and Technology Research Institute (ASTRI).

Blockchain platform to replace paperwork operations

Digital authorization will replace paperwork operations like signing the Provisional Sale and Purchase Agreement or a mortgage application on the platform. It will enable users to send the purchaser’s authorized, encrypted and digitally signed provisional agreement to any Chinese bank, according to a report by local news outlet The Standard, on February 20.

The platform is starting with the Bank of China as its first bank user, but more banks are expected to join, as the developers believe integrating distributed ledger technology (DLT) into banks’ internal processes will help reduce operating cost by 15 to 60 percent.

ASTRI CEO, Hugh Chow, reportedly said that the DLT could positively alter property market operations, leading to increasing efficiency and flexibility in property buying procedures. Meanwhile, Adrian Cheng, vice chairman of New World Development, hopes the platform will open up the real estate industry that has rarely seen high technology introduced into the purchasing process in the last three decades.

Bank of China already exploring blockchain

In August 2018, Bank of China and a financial services corporation China UnionPay (CUP) partnered to explore the use of blockchain technology for payment systems. Within the context of the partnership, the CUP was to develop a unified port for mobile-integrated financial services where cardholders can use a QR code for transactions on a cloud flash payment app.

China is actively adopting blockchain technology in several industries. Earlier this month, the Chinese government issued its guidelines for implementing blockchain in the agricultural finance sector in order to help improve the identification, monitoring, early warning, and disposal levels of agricultural credit risks.

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