Chinese Internet and tech giant Tencent is the latest multinational conglomerate to enter into the banking industry. Following the Chinese president’s call for companies in China to take a more aggressive role in the development of blockchain technologies, Tencent has applied for and been granted a banking license. With its new banking license, Tencent will be able to supply hundreds of millions with digital currency solutions. Tencent’s new banking venture will be a virtual bank, completely based on blockchain technology.
World Blockchain Summit
At the World Blockchain Summit in China, Tencent’s blockchain head, Yige Cai, spoke about the company’s foray into the financial sector. According to Cai, Tencent has received the go-ahead from the Chinese authorities to launch their digital bank. He said that now that things are in motion, the company plans to move ever-upward with plans to create an entire department dedicated to the success and development of the digital bank.
Cai also spoke more broadly about the developments which lead to Tencent getting into digital banking in the first place. According to him, the push by the Chinese government for companies to further blockchain tech within the country speaks volumes about the vital role both digital currencies and blockchain will play in the Chinese markets in years to comes, as well as the rest of the world.
Current Blockchain Infrastructure
Tencent’s success in the digital banking marketplace seems a sure thing. The current blockchain infrastructure that the company employs, is vast indeed. The digital bank planned by the company is only one of three parts of the blockchain subdivision of Tencent.
Tencent’s blockchain-based supply chain financing product used on a global scale by McDonalds is already hugely successful, as are the products or other major players. SC Digital Solutions and Alibaba are among the companies which enjoy the infrastructure Tencent provides. The cloud services based on blockchain tech that are offered by another side of the blockchain development team are also hugely successful.
It seems clear enough that Tencent is fully capable of uniting its various areas of expertise to create a digital banking system that covers all the bases. In fact, we are on the verge of seeing a complete shift in the banking paradigm within China, and it is very likely that the country will create models for the industry that other countries will base their own developments on. With continued support from the Chinese government, as well as further well-funded research and development into the possibilities of blockchain technology promises, Tencent may be just the first in a long line digital banking solutions coming out of China.