The Academy of Information and Communications Technology , a Chinese scientific research institute and Tencent Holdings, value-added Internet service provider, on the 24th of July jointly released a report that emphasied the impact of blockchain on the transformation of traditional financial services.
The report explains that blockchain technology will enhance “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. The study further comments:
“In addition to digital currency, the characteristics of the blockchain can play a big role in the fields of payment and settlement, supply chain finance, securities trading, insurance, and credit reporting.”
During the process of applying blockchain it is necessary to differentiate between the “coin” application and the “chain” application, presumably a reference to blockchain tech’s basis for most cryptocurrencies.
“For the ‘coin’ application, the financial risk should be strictly guarded. For the ‘chain’ application, it should be legally regulated.”
China recently downplayed blockchain tech, as the head of the international department of the China Banking and Insurance Regulatory Commission warned against “mythologizing” blockchain technology in mid-July.
China was the first country to institute a ban on ICO's and exchanges and the country has since had some difficulties with the decentralised and liberal freedoms that come along with blockchain and cryptocurrencies.