Hongkong and Singapore will be the first to use distributed books and block chain technology
Rui Bo (Ripple) executive director of the Asia Pacific region DilipRao said Asia such as the financial center of Hongkong and Singapore will be the first to use distributed technology books or block chain technology.
This view has been a recent report support, the report says 22 of the world’s market capitalization of more than $1 billion in financial technology companies in the 1/3 Unicorn from Asia, especially Chinese, the global value of these 22 companies add up to more than $74 billion.
According to the global financial report of New York science and technology research company CBInsight: back in 2016, the company has 7 in Asia, 6 of them in China. Last year, the financial subsidiary of the Alibaba and the Jingdong’s market capitalization reached $60 billion and $7 billion 100 million, while the United States has 11 companies on the list, Europe has 4 companies on the list.
Show in February 15th report published on Wednesday in the block chain and bitcoin start-ups receive funds fell to $69 million in the 2016 quarter of fourth, although the Blockstream and digital asset company (DigitalAssetHoldings) after the two companies to invest, investment amount reached rose slightly, reached $150 million. In 2016, the Asian financial venture backed technology companies are a new record in the financing agreement and the amount, the number and amount of financing projects in Asia were accounted for 20% of global and 43%.
The report added that Chinese venture backed financial technology companies hit a 5 year high in the number and amount of financing projects, respectively 46 agreements and $4 billion 600 million.
CNBC in a recent interview, Rao pointed out that the progress of science and technology, especially the blockchain technology, can provide solutions for the current global funds transfer mode is slow, expensive and unreliable. He believes that the Asian economic and social structure make it an ideal area using the block chain technology, the region has become a huge area of the use of mobile Internet, promote the development of electronic commerce.
He cites a A.T.Kearney report that in the next few years, e-commerce is expected to grow at an annual rate of 25% in Southeast asia. According to the 2016 global payment report shows that this will lead to a surge in cross-border payments, cross-border payments has reached 30 per year trillion, and the growth rate is three times the global growth rate of GDP.
However, according to WTO from international trade statistics (ITS), the study of international financial capital flows of the total (ACF) and the Federal Reserve, cross-border payments data show that cross-border transaction costs are $1 trillion and 600 billion a year.
Rao believes that this is why you need to block chain as a solution to the current global payment system. The current payment system is not unified, so that every country, asset categories, payment type (either high or low) have different rules and system, operation system and access requirements, resulting in a transaction need several days to complete.
However, according to the global confidence in the service group report a study focused on financial data said, if you use a unified 7*24 hours online, the bank can be directly and instantaneously in the global scope to second billing transactions, and zero error rate.
According to the IBM technology company and the Economist Intelligence Unit (EconomistIntelligenceUnit) according to a survey conducted by the public sector leaders, in 2018 90% of the world’s government plans to invest the blockchain technology, the frequent financial activities of the national government will be large-scale use of block chain technology. These pioneers — mainly from the financial market, which is 70% smaller financial companies with fewer than 20 thousand employees accounted for 14% of the number of respondents, they expect to be able to obtain large-scale blockchain products in 2017, the pace of development of Asian and western regions of the fastest.
For example Chinese, about 17% of the global financial activities here, is seeking to invest block chain technology to improve transparency and combat fraud, thereby eliminating corruption system.