A recent report called The Rise of FinTech in China – Redefining Financial Services from DBS and EY places a powerful light on China’s unique, dynamic and rapidly evolving FinTech ecosystem, while examining the key drivers behind the explosive growth of FinTech sector in the country – including Blockchain.
The report notes that in Mainland China, Blockchain initiatives have largely been associated with academia and research institutions. International banks, which are among the leaders in Blockchain exploration, have been reluctant to enter the Chinese market.
But interest has been escalating, partly fuelled by the second Global Blockchain Summit held in September 2016 in Shanghai and China’s Ministry of Industry and Information Technology has also organised a special government-industry working group to present a plan for promoting the development and adoption of Blockchain technology.
A recent survey estimates that FinTech markets’ investments in Blockchain technology will reach US$1 billion by end 2016. This reflects an exponential growth curve, with VC-backed investments in Blockchain and bitcoin companies rising from an almost non-existent US$3 million in 2011 to US$474 million in 2015.
The Chinese market has likewise seen a flurry of developments by mid-2016, with the formation of consortia such as:
- China Ledger Alliance – comprising regional exchanges to create an open source Blockchain protocol to support an eventual ‘Internet of Everything’ for China
- Financial Blockchain Shenzhen Consortium – with members that include Ping An Insurance (part of R3, a global consortium of more than 50 financial companies involved in R&D for Blockchain usage) and a Tencent subsidiary). This Consortium intends to collaborate on research and group-wide Blockchain projects, with a focus on capital markets technology, securities exchange, trading platforms, banking and life insurance. It aims to create a securities trading platform prototype and develop credit, digital asset registry and invoice management services.
- Qianhai International Blockchain Ecosphere Alliance – which aims to establish an efficient ecosystem for developing Blockchain technology and its applications by combining Mainland China and international talent, technology and capital. The Alliance, which includes Microsoft, IBM and Hong Kong’s Applied Science and Technology Research Institute (ASTRI), hopes to accelerate the commercialisation of Blockchain R&D and promote its application to support China’s social and economic development
These Blockchain forays are still at the nascent stages in China, with some proof-of-concept efforts under way but wider adoption and implementation remaining a long-term play. As with Blockchain developments elsewhere, pain points in current platforms are impeding adoption. Challenges include: difficulties in integrating with current ecosystems; lack of security protection for application data, logic and operating environment; and issues around trust and protection of individuals’ and business’ privacy.
- New Satoshi on the Block Plans a ‘Reveal’ – Bitcoin Community Responds - August 19, 2019
- Binance Announces Open Blockchain Project ‘Venus’ – Calls on Governments, Companies and Organizations to Develop Localized Stablecoins - August 19, 2019
- Blockchain-Fueled VeganNation raises $10 million for Vegan Global Marketplace - August 19, 2019
- Fight to Flame – Mike Tyson Denies Issuing Token and Working With Fight2Fame - August 17, 2019
- Bitcoin Wealth is Almost 50 Times More Concentrated than Global Wealth According to PARSIQ Research - August 16, 2019
- Graph Blockchain Signs LOI to Acquire Cyberanking Ltd. an Esports Company - August 16, 2019
- Blockchain Moves Into The US’s Largest Oil Fields With Data Gumbo - August 16, 2019
- BlockStar Teams Up With Cycling Apparel Brand De Marchi to Auction Fausto Coppi’s Cycling Jersey - August 16, 2019
- Zcoin Available to Five Million Merchants in Thailand - August 16, 2019
- Republic Partners with Althea to Launch First-Ever Compliant Security Airdrop for Retail Investors in the U.S. and Abroad - August 14, 2019
- Mark Cuban’s Dallas Mavericks Basketball Team Join Up With Bitpay To Accept Bitcoin For Tickets And Gear - August 14, 2019
- Mike Tyson Launches Fight to Fame – Crypto-Driven, Blockchain-Fueled Fighter Booster - August 14, 2019
- Blox Survey: Ninety-Five Percent of US CPAs Believe Clients are Not Disclosing All their Digital Assets and Transactions - August 13, 2019
- New Zealand Allows for Employee Payments to be Made in Cryptocurrency - August 13, 2019
- USA SEC Postpones Decision on Three Bitcoin ETFs - August 13, 2019
- Cryptocurrency Thefts, Scams and Fraud May Exceed $4.3 Billion For 2019 - August 12, 2019
- China’s Central Bank Gears Up to Launch it’s Own Cryptocurrency - August 12, 2019
- Overstock: Retail Traders Can Now Invest in STOs at tZERO - August 9, 2019
- Merj Rolls Out The First-ever Official Listing Of A Tokenized Security On A Regulated National Stock Exchange - August 9, 2019
- Commerzbank And Daimler Trucks Test Machine-to-machine Payments On Blockchain - August 9, 2019