China Merchants Bank (CMB) has made a breakthrough by successfully incorporating blockchain technology into its business in the areas of Global cash management, cross-border direct settlement, and unified account management.
According to a Chinese news portal 8BTC, the successful completion of blockchain implementation in its business solves the problem of the settlement between branches at different locations. With this, branches can share information on blockchain and settlement requirement can be made between any two branches.
CMB’s new blockchain system has shown its high efficiency where the decentralized system decreases information transmission time from its usual 6 minutes to within seconds. It has also shown high security where it is difficult to mutate the information that is recorded on a closed private chain. High stability where a breakdown of any node will not affect the operation of the network, and high scalability where a new member can quickly integrate to the whole network, was also proven by the blockchain test.
The bank also said that it is actively strengthening exchanges with foreign banks in order to set common standard related to cross-border payment with a focus to conduct direct settlement between different banks possible.
Last month, the People’s Bank of China completed a trial of a blockchain-based digital currency. The digital currency system was tested with several commercial banks, including the Industrial and Commercial Bank of China, Bank of China and the private WeBank.