China’s Third-Largest Bank Issues Farmland Mortgage Loan on a Blockchain
Press Release, Agricultural Bank of China | July 31, 2018
The Agricultural Bank of China (ABC) has issued a $300,000 farmland loan on the blockchain in a pilot program—the first farmland mortgage loan based on blockchain technology issued by the National Agricultural Bank System. According to a local news source, ABC used a segment of agriculture land as collateral to issue a mortgage loan and recorded the mortgage details across other node partners, including commercial banks, Guizhou’s Land and Resources Bureau, and the local branch of the People’s Bank of China. ABC’s
According to the local news source:
Since the beginning of this year, the Agricultural Bank of Guizhou Branch has successfully communicated with local people and government departments on the basis of realizing the full coverage of the “two powers” mortgage loans of 10 national pilot counties, and successfully launched the farmer’s agricultural land mortgage transaction system. The system fully utilizes blockchain technology such as distributed data storage, point-to-point transmission, consensus mechanism, and encryption algorithm. Through this system, the bank builds blocks with local people, pilot land and resources bureaus, and agriculture and animal husbandry bureaus. The chain node, which utilizes the technical characteristics of the blockchain that cannot be copied and cannot be falsified, effectively guarantees the authenticity and security of the “two rights” data and customer information, and avoids the risk of “two rights” repeated mortgages from the source. The system realizes online real-time transmission of “two rights” data, and moves “two rights” mortgage application, approval, mortgage registration, etc. to the online, which greatly improves the efficiency of loan operation.