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New World Development, a property building firm and Hong Kong Applied Science and Technology Research Institute ( ASTRI) are all set to launch a blockchain platform- PropTech- for home buyers. Reportedly, Bank of China will be their first bank user.
The platform aims to completely replace paperwork operations. These include signing mortgage applications, signing lease documents and purchase agreements. Moreover, it will allow users to send the purchaser’s encrypted, authorized and digitally signed agreement ( provisional) to some selected banks.
The Whitepaper 2.0 on distributed ledger technology conducted by the Hong Kong Monetary Authority estimates that incorporating blockchain into the enterprises’ internal processes is likely to help reduce banks operating costs by 15-60%. Besides, the developer estimates that PropTech will save home buyers eight hours. Akan Wong, director of sales and marketing at New World Development, said that PropTech expects to see 4,000 users in 2020.
ASTRI CEO Hugh Chow said that DLT can possibly overhaul market operations in the property sector. This will further lead to flexible and more efficient buying procedures. On the other hand HKMA put forth an argument that DLT allows users to securely share customer information and transaction histories over a distributed data infrastructure. In addition, to ensuring safe keep of customer privacy and sensitive business information.
In August 2018, Bank of China entered into a partnership with financial services corporation China UnionPay (CUP) to explore applications of distributed ledger technology for payment systems. In lines with the initiative, CUP was purported to be built as a singular port for mobile integrated financial services. Wherein card holders can use a QR code to either transfer, send and trade on a cloud flash payment app.
Also, in January 2019, the China Banking Association ( CBA) made an announcement that it will be launching a blockchain-based platform to improvise on efficiency across the sector. The project aims to to tap blockchain for targeting transactions, trade finance and other financial services. Reportedly, HSBC, Bank of China and Ping An Bank signed up for the project. United Nations Development Bank agreed to sponsor the project with several banks lined up.
China is earnestly adopting blockchain technology in several sectors. Moreover, the country’s government issued the “Guiding Opinions on Rural Service Revitalization of Financial Services.” This new framework has an aim to use rapidly growing technologies like distributed ledger technology for improving identification, monitoring, early warning, and disposal levels of agricultural credit risks.