The Bank of China will become the first bank in the world to use a blockchain network platform for real estate transactions. The groundbreaking development is a joint effort by property development firm New World Development and Hong Kong’s Applied Science and Technology Research Institute.
Paperwork Is in the Past; Welcome to Blockchain Future
The details of this announcement include digital authorization that will eventually replace paper operations such as signing purchase agreements and mortgage applications. Hence, it will enable users to send the buyer’s authorized, digitally signed, and encrypted agreement to any Chinese bank. The implementation of blockchain technology for real estate is just beginning, and more banks will join the Bank of China in using blockchain technology in their internal networks. The developers believe that integrating distributed ledger technology into the banks’ processes will bring a 15% to 60% reduction in operating cost.
China Adopting Blockchain at Fast Rate
China is actively expanding blockchain technology throughout several industries, including its real estate industry. Earlier this month, the Chinese government released its guidelines for introducing blockchain in the agricultural finance sector to help improve the monitoring, identification, early warning, and disposal levels of agricultural credit risks. More industries will likely follow.
What Does This Mean for China and Propy?
The Chinese government’s increasingly optimistic stance toward blockchain comes at an excellent time for Propy. Just as Propy begins its expansion in Asian markets, governments are starting to implement blockchain technology in real estate markets. Propy hopes to aid open-minded and interested countries.
Propy hopes to see other countries join China in developing blockchain infrastructure for real estate application. Stay tuned on the Propy blog for more exciting news regarding blockchain implementation in real estate markets around the world.
