Growing Interests of China’s Capital in Blockchain: BAT All take actions
Blockchain-a seemingly arcane jargon has become the buzz word in China. Chinese Government never hides their supporting attitude by emphasizing its active research on digital currency and evident willingness to recruit talents with crypto backgrounds. Reports of explanation of bitcoin and blockchain are seen every day. Experts are convincing people that blockchain can transform finance, insurance, philanthropy and many other sectors. Are these hopes on blockchain hyped or justified? When the decentralized era is yet to come, no one can give the answer. But the capital in an economy always go to the correct direction. As Chinese capital markets has given a proactive response to blockchain, some clues will be gained to predict how blockchain industry is going to evolve. This article is going to list the important investment and cooperation related to Chinse blockchain industry happened in China.
In May, Tencent, a Nasdaq-listed company with more 700 million active users on its messaging app Wechat, announced its online bank, Webank it jointed the Shengzhen Alliance of Financial Blockchain Cooperation. The alliance has more than 60 financial institutions as its members including banks and companies from fund, securities and insurance. Tencent’s Webank has issued private loans worth 400 million RMB to its Wechat users. The fact that is loan product is based on cooperation with more than 10 banks requires Tencent have a solution that can handle the data exchanges, clearance and reconciliation among these agencies. To make these process instantaneously, Tencent resorts to blockchain.
In June, Baidu, Chinese equivalence of Google and also a Nasdaq-listed company, became the strategic investment partner of Circle Internet Financial Inc., whose main business is a blockchain-based paymenys app. Baidu is part of the investment consortium that has injected 60 million USD to Circle. To invest such a company, Baidu has shown its concentration on payment. Baidu has amassed enormous resources including capital and users’ data for its monopolized position as a search engine. Its businesses now cover from finance to group buying website. To streamline its business at least in payment process
In July, Ant Financial, the subsidiaries of Jack Ma’s Alibaba, confirmed that they would focus on applying blockchain into its philanthropy platform to make each donation transparent. Alibaba’s move to concern blockchain will not only help its donation platform, but also facilitate its other business. With Blockchain technologies, Alibaba can track the flow the money and how the receives would like to use money. Based on these Alibaba will have records to set-up these peoples’ credit rating and then tailor-made financial products like low interest loans to help people get rid of poverty.
BAT’s market values and profits account for 70% of all China’s listed internet companies respectively. Their endeavor in blockchain will make the Blockchain industry more competitive. The fierce competition will bring more concentrated technology and capital, thus boosting the whole industry. We have reasons to believe that capital flow is the best parameter for a technological innovation.
Senior Editor of international site of 8btc Years of experience of working at KPMG, one of the big 4 accounting firms, discerning in disseminating the useful and essential information in bitcoin and blockchain area as he deeply understands that finance, among many areas, can be the most crucial arena where blockchain and related technologies can be applied. Chris was also a senior interpreter and translator before joining 8btc News.
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