Major Chinese Bank and Insurance Company Further Integrate Blockchain Technology

China appears to double down on its “no crypto, yes blockchain” unofficial policy. Whilst the world’s largest populated country – which is led by the Communist Party of China – has targeted cryptocurrency in a variety of areas, it also seems to invest heavily in one vital aspect of crypto, blockchain technology.

According to a recent report in the Chinese press, the Chairman of the Industrial and Commercial Bank of China (ICBC) Yi Huiman has stated that the bank would further focus on utilizing blockchain among other developing technologies. He explained the 3-prong strategy of the bank:

  1. Further advance the e-ICBC3.0 update (the “Smart Bank”), which was initially launched in 2017.
  2. Develop innovations in the areas of cloud computing, big data, artificial intelligence, blockchain, and Internet of Things (IoT).
  3. Creating more smart banking application scenarios.

The report also indicates that the ICBC released an API to allow third parties to empower financial institutions to embed the bank’s technologies and open platform, which objectively sounds pretty awesome.

In a different strategic move, another major Chinese financial institution is deepening its integration with blockchain technology. The People’s Insurance Company of China (PICC) announced on two different companies that deal with blockchain technology: the enterprise-focused dApp/ICO and blockchain platform VeChain, and global quality assurance and risk management company DNV GL.

The official announcement professes that the current management systems of the company are lacking and inefficient, whereas blockchain technology “can bring digital transformation, resulting in reduced turnaround time, premiums, prevent fraud and improve KYC compliance and claim experience.” It has already been established by studies that by wielding blockchain technology, banks and other financial institutions can save billions of dollars each year precisely on the aforementioned aspects.

According to the official press release:

By partnering with DNV GL and VeChain, PICC can provide robust assured solutions that protect user data, distribute ownership, and enhance existing artificial intelligence. These solutions will do so without having to educate PICC’s clientele on blockchain technology while still offering the maximum benefits the technology provides.

It is highly unlikely that neither the ICBC nor the PICC could have initiated the blockchain-focused moves without the approval of the highest authorities in the Communist Party of China – especially when considering that the Chinese government has unofficially (yet) restricted and suppressed the employment of cryptocurrency throughout mainland China. The implementation and exertion of blockchain technology, however, is not only permitted but also encouraged. The Communist state has even published a book about blockchain to educate the Party’s official about this evolving decentralized technology.

In fact, this approach of adopting blockchain and shunning cryptocurrency is being used by some American bankers as well, such as JPMorgan Chase CEO Jamie Dimon.

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