A few days ago, Ant Financial launched the blockchain cross-border remittance business in Hong Kong. This business, which was acquired by Ma Yun’s personal platform, was regarded as a new breakthrough in the blockchain application scenario by Ali as a blockchain for cross-border remittances. The e-wallet, Gcash real-time arrival, 7×24 hours uninterrupted, and excellent exchange rate are regarded as the advantages brought by the blockchain for cross-border remittance.
Accenture pointed out in the report “Blockchain Technology: How Banks Build Real-Time Global Payment Networks”, blockchain technology is the most popular application area in the banking industry, and nearly half of researchers focus on cross-banking. Cross-border remittances are the second most important application area, and P2P transfers from end users are the fifth major source of revenue for commercial banks.
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Application of blockchain technology in cross-border payment and remittance
Financial institutions have always been an active explorer of blockchain technology, and cross-border payments and remittances have become a major scenario for blockchain applications due to the length and inefficiency of their traditional links. However, due to the cross-border payment and remittance participation roles and complex internal structure, it is slower to explore practice than other application scenarios.
On February 24, 2017, China Merchants Bank announced the implementation of blockchain technology in the global cash management (Global Cash Management) cross-border direct-link clearing, unified view of global accounts and cross-border capital collection. The cross-border direct-link clearing system after the blockchain transformation has realized that six overseas institutions plus the head office are connected to the blockchain, and any two organizations can initiate a liquidation request, and any two institutions can perform liquidation. In addition to high security, high availability, and high expansion, high efficiency has become the biggest highlight of the cross-border direct clearing system of China Merchants Bank: the message delivery time has been reduced from the past 6 minutes to the second.
In October 2017, MasterCard announced that it will officially open blockchain technology through APIs released on its developer platform, providing consumers, merchants and banking partners with a new trading method and applying the technology to enterprises. Support for all types of cross-border payments and B2B payments (whether based on accounts, blockchains or bank cards) in corporate (B2B) payment services to help customers improve the speed, transparency and cost of cross-border payments ).
In November 2017, global credit card giant Visa launched its first trial phase of its blockchain-based B2B payment service, B2B Connect, with Bank of America, Korea Shinhan Bank, Philippine United Bank and Singapore Union Overseas Bank. The bank conducts real-time interbank transactions on the platform. The program was launched to promote cross-border payments by facilitating direct payments between agencies, eliminating the middlemen that the industry is currently relying on. The commercial implementation phase of the project is expected to be in mid-2018.
In addition, the Commonwealth Bank of Australia and Wells Fargo cooperated to achieve the first multi-blockchain cross-border transaction, SWIFT distributed ledger technology application platform plan, etc., highlighting the financial industry’s enthusiasm for blockchain technology. In addition to the exploration of traditional financial institutions, blockchain companies are also very active in this area.
Founded in 2013, Circle provides payment clearing services based on blockchain technology. Through Circle’s app, users can initiate instant transfer, payment, and bitcoin in the form of sending a message without a fee. With the support of blockchain technology, payment behavior can cross-border across systems to achieve a more convenient and safe currency flow around the world. In 2015, Circle issued a digital currency license (BitLicense) from the State Financial Services Authority (NYDFS). In 2016, the investment institutions including Baidu received a total of 60 million US dollars of D round investment.
Ripple is the second company to receive BitLicense after Circle. Its purpose is to achieve fast and low-cost international transfers through blockchain technology, and has now reached cooperation with multinational banks and financial institutions. The Bank of England tested Ripple in 2017, saying its prospects are bright but “not mature enough” and Santander is planning to launch a Ripple-based cross-border payment application in the near future. But according to Reuters, Ripple chief cryptographer David Schwartz recently said that Ripple’s cross-border payment technology is not yet suitable for banks.
BATJ layout new trend, blockchain touched core business for the first time
As the vanguard of the Internet era, BATJ can, to a certain extent, represent and promote the role of the blockchain in the ordinary public life, both in terms of resources and trial and error costs. Golden Finance had invented the layout of BATJ in the blockchain field in mid-April . After three months, today, we can see that BATJ’s exploration of blockchain is more obvious than the slight caution at the beginning of the year. Open and bold.
Ali’s attitude is evident from the importance attached to the blockchain technology by Chairman Ma Yun. In the past two months, Ma Yun has repeatedly mentioned blockchain technology in public, not only personally launching its e-wallet cross-border remittance service based on blockchain technology, but also said at the press conference that “blockchain can be changed. The world is more than people think.” Previously, the exploration of the Ali blockchain pioneered by Ant Financial has been stuck in marginal non-core businesses such as charity and traceability. The application of blockchain technology to cross-border remittances can be seen as having begun to block. Chain technology is applied to the core business. According to the Golden Financial interview, the cross-border remittance service based on blockchain technology introduced by Ant Financial is limited to C2C between Hong Kong and the Philippines. There is no plan for further urban expansion.
From the introduction of the blockchain original image service platform totem, to the new generation of blockchain network operating system “superchain” and then to the blockchain native application “degree universe”, Baidu has recently been active in the blockchain field. The original Baidu Finance, which has been split from Baidu Group, was renamed “Xiaoxiaoman Finance”, and it is also frequently deployed in the blockchain field. Its leading R&D dog teamed up with the China Soong Ching Ling Foundation to help the public interest during the World Cup. Introduced the blockchain C-end product “Oasis”. Li Feng, head of the financial blockchain in Xiaoman, said in an interview with Golden Finance that although there are no mature applications yet, both the Leitz dog and the oasis carry the experience of more ordinary people. The chain is what the task is.
At the end of April, Tencent’s first blockchain game began to come out, code Z. Li Maocai, general manager of blockchain technology of Tencent Group, said in public that Tencent is currently focusing on the virtual asset application of players in the game. In addition, mass storage solutions are divided into user data storage solutions and blockchain file storage solutions. And taxation—based on blockchain-based electronic invoicing applications, the use of cryptographic informatics mechanisms and the exploration of data semi-isolation mechanisms are currently the main application practices of Tencent in blockchain technology.
At the beginning of May, JD.com launched the blockchain game Hash Manor based on WeChat applet, but the line went offline in less than one day. Golden Finance finally verified it with Jingdong, and received an exclusive response saying that the reason for the downline was that the small program has been completed. The feedback of the test was collected and upgraded offline. Up to now, no new news has been sent. At the beginning of this month, JD.com announced that its self-developed blockchain as a service platform (BaaS, Blockchain as a Service) will be officially launched, and the global blockchain anti-counterfeiting and traceability alliance main chain will be officially launched in early August.
From the overall situation, the development of the chain is still changing with each passing day, the enthusiasm of entrepreneurs is not diminished, the giant blockchain technology is slowly shifting from non-core business to core business, and the government’s recognition of blockchain technology, the chain may be welcoming development. The new “bull market”.