Bank of China, a leading state-owned commercial banks in China, will use blockchain technology to back its efforts aimed at alleviating poverty in the Tibet Autonomous Region, according to China Money Network.
The bank has previously developed a cloud-based system which enables collective management of projects. The system helps to manage local poverty reduction fund with its functions such as information access, security certification, and file transfer. Bank of China is now looking to upgrade the system using blockchain technology.
According to the bank, the technology will help ensure transparency in the use of the fund, precise fund allocation and efficient management.
Bank of China will establish a multi-node blockchain network, which will enable it to connect with partners including Agricultural Bank of China and fund applicants. The trial in Tibet will set the precedent for similar efforts in other poor provinces such as Gansu, Yunan and Qinghai, it said.
Bank of China has been actively engaging in blockchain innovation. Earlier this year, it filed a patent application for a process it says is better able to scale blockchain systems. In April, Bank of China Hong Kong (BOCHK) announced that it now handles almost all its real estate appraisals via blockchain.
