Bank Of China Pursues Blockchain Projects While Rejecting Cryptocurrencies

Cryptocurrencies as a substitute of official currencies were thought as the first application of a much more general tech called blockchain. The blockchain is revered as one of the most influential and disruptive technologies of this new century, often being compared with the impact that internet had in the late 90’s. Cryptocurrencies and blockchain are often mixed up, but the truth is that they are different things. And no one knows better about this than the Chinese government, that has had a hostile stance to cryptocurrencies but has been strangely open to blockchain-based applications even to the point of financing some directly. This is the case with the Bank of China, that recently announced that the bank will be spending more and more on blockchain related projects according to the Wall Street Journal.
Liu Quiwan, the CIO of the bank of China said that they are keen on using blockchain to automatize certain banking operations and that at least one percent of the bank’s budget will be spent on more than ten blockchain related projects in the near future. For some, it might sound insignificant, but the one percent of the budget of a statewide commercial bank is a lot of money put into a disruptive tech.
Though cryptocurrency purists would say that these instruments were created to sidestep these financial institutions, this kind of collaboration between blockchain, cryptocurrencies, and financial institutions is becoming a trend lately with more than one bank doing test pilot for blockchain-based decentralized systems and serious companies like IBM backing up these projects.
Though mentioned as one of the most interesting techs, blockchain apps are still in their infant stages, and while cryptocurrencies are a testament that blockchain is indeed a usable tech, expertise in other fields of work is necessary to define if it will be quick or effective enough for other uses. At least, institutions like the Bank of China are putting serious money on it.

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