A Chinese value-added Internet services provider (ISP) Tencent Holdings and a scientific research institute came together to extensively research how the implementation of Blockchain has transformed traditional financial services, and their report released on July 24 confirms what many already believe. The scientific research institute mentioned above is The Academy of Information and Communications Technology, an institute that works directly under MIIT (Ministry of Industry and Information Technology) of China. CAICT has proved itself to be a crucial facilitator in the smooth advancement of China's communication and information industry by providing the necessary support for the industry's major certification, testing, standards, policies, plans, and strategies. Tencent Holdings Limited, one of the largest multinational investment holding conglomerate in China, is well known for its subsidiaries that specialize in providing artificial intelligence (AI) and technology, entertainment and many other internet-related products and services in China as well as around the world. These two trusted giants of China gave a report emphasizing the impact of Blockchain and found 8 core conclusions of blockchain introduction in the financial sphere.
Standardization of Blockchain technology as well as of the IoT (the Internet of Things).
The report also stated that Blockchain tech will definitely further increase "the transparency of financial transactions, strengthen the flexibility of system operation, and automate processes, thus affecting the record keeping, accounting and payment settlement methods of financial services." To elaborate on the uses of the technology, the report further goes on to say that in addition to digital currency, theses feature blockchain technology can play a huge role in the fields of credit reporting, insurance, securities trading, supply chain finance, payment, and settlement.
Fan Wenzhong, the chief of China Banking and Insurance Regulatory (international department) is also said to have warned against creating such an exaggerated image of this technology.
The report also notes that it is crucial to explain the thin line between "coin" application and "chain" application during the procedure of applying Blockchain. It says that for the 'coin' application, the financial risk should be strictly guarded. For the 'chain' application, it should be legally regulated." While the meaning of this is not very clear, it can be presumed that it is, in fact, a reference to Blockchain technology basis for the bigger part of cryptocurrencies.
A few days ago, on July 23, 2018, the three of the biggest telecom operators of China – China Telecom, China Unicom and China Mobile launched a "first of its kind" Blockchain research group at their first meeting. This group is a team of 20 experts from top companies like UMF (Financial Technology) Union Mobile and Huawei and they will work together to build a "next generation telecommunication network." China's involvement with this technology doesn't stop here. As reported on July 18, it is also in the talks to be the leader of an international research group chaired by Dr. Shen Jie with expert members from at least 10 countries including France, Germany, the United Kingdom and the United States. This group will work on the standardization of Blockchain technology as well as of the IoT (the Internet of Things).
"the transparency of financial transactions, strengthen the flexibility of system operation, and automate processes, thus affecting the record keeping, accounting and payment settlement methods of financial services."
All this change actually comes as a surprise, considering how China has always been first in lashing out harsh regulations to get rid of Bitcoin and other cryptocurrencies. They also instituted blanket bans on ICOs and all forms of cryptocurrency trading. Fan Wenzhong, the chief of China Banking and Insurance Regulatory (international department) is also said to have warned against creating such an exaggerated image of this technology. But in light of the latest of their developments and their new steps to adopt blockchain tech, it is now believed that the downplaying was actually a clever trick to build it up stronger than ever.