One of China's largest and most prominent telecom providers (and the company behind the popular WeChat instant messaging app) wants invest in the development of the blockchain-based banking sector, as it has already obtained the necessary approval from regulators.
Part of the sum will be invested in new technologies
According to a report by Finance Magnates, Tencent executive vice president Dowson Tong shared the business plans with the Chinese press. Tong says Tencent wants to invest $ 70 billion in an infrastructure based on artificial intelligence, cloud computing and cybersecurity.
But what is more interesting is that a part (it is not known how much) of that sum will be invested in the Blockchain sector. The company representative did not specify which companies will receive funding and which products they intend to create.
According to Dowson, the company has already lost significant profits in the cloud computing sphere due to the coronavirus pandemic. But the "new infrastructure" will ensure that the company moves beyond the COVID-19 crisis. He said:
"Accelerating the new infrastructure strategy will help further cement the success of virus containment."
Tencent is one of the leaders of the Chinese economy and a large business conglomerate founded in 1998. The engineers behind the companies are developing a variety of online services. These include messaging apps, entertainment platforms, retail products, and other services.
China's BSN could receive a significant increase
The report comes a month after the Blockchain Settlement Network or BSN was officially announced. The BSN is envisaged by China as the new type of infrastructure for banking services. It will allow honest market participants to move their transactions to blockchain, thus opening up new possibilities for cross-border IoT and AI projects.
Tencent successfully launched the first ever DLT service last year. It allows people to receive and pay bills using the blockchain. They have obtained a license that allows the creation of a blockchain bank based in Hong Kong. The company recently joined a national committee dedicated to setting industry standards at a higher level.
For Haypo Yang, founder and CEO of the Chinese exchange CoinEx, the moves will pay dividends. Yang thinks that people around the world will soon recognize China as the main technology hub. All thanks to the positive attitude of the government. He is confident that BSN will lead "the emergence of a vibrant blockchain investment scene".
The Blockchain allows transactions to be settled in minutes, which is a significant step up from the standard 2-3 day transfer periods of classic banking systems. Bitcoin's rapid establishment in TX was one of the main reasons that led to its adoption since the early days.
Here, another giant of technology that is moving in the same direction that others have already decided to follow. Adoption of the blockchain will soon be total and worldwide.