Tencent’s WeBank, which is a digital bank in China that provides loans to individuals and small businesses, will be the technical infrastructure provider for China’s national blockchain network, according to a report by Coindesk.
The blockchain network is called the Blockchain-Based Service Network (BSN), and it uses open consortium chain FISCO BCOS.
The network is not comprised of a single blockchain, but rather the consortium is a set of blockchain applications meant to aid the public.
The BSN is made up of 14 members, and it was launched last week. It will work on developing and operating the blockchain-based applications that will reside in the network, with each member contributing knowledge in their respective fields.
Consortium members include Huobi China, the State Information Center, WeBank, China UnionPay, China Mobile and China Telecom.
WeBank was started in 2014, and it was also the first internet bank to be licensed by the China Regulatory and Securities Commission. Following that, it expanded into blockchain services.
Prominent investors in China, like Liye Group and Baiyeyuan, have invested in WeBank. China has been working diligently on building a nationwide blockchain network across the country, which would include the telecommunications and energy management sectors.
So far, BSN has been tested in 25 cities in China, as well as in Hong Kong and Singapore. By 2020, it’s expected to be in 200 cities in the country.
China has been bullish on blockchain but adamantly against bitcoin.
If blockchain might be thought of as the rails that underpin cryptos’ journeys as they move between parties, China seems intent on limiting just what can ride those rails.
And bitcoin, increasingly, is not likely to be in the picture (nor would a slew of other coins) in a way that some may have hoped.
As has been noted by The Wall Street Journal, the People’s Bank of China (PBoC) and government authorities (through the Shanghai office of China’s financial regulator) have said that they will continue a crackdown on exchanges that has stretched out over two years.
The authorities have moved to shut down exchanges that are registered outside the mainland and shutter companies that bring Chinese customers to those exchanges.