Blockchain provides a potential solution to providing authenticity amongst transactions and near instantaneous speeds. The implementation through Bitcoin has shown the world the need for technologies that give people control and trust of the transactions around them.
It’s not a surprise that blockchain technology has taken off in the world’s largest country. With a population of over 1.4B people and a growing middle class, China is forced to find ways to streamline transactions and fight against fraud. The large Chinese banks struggle to modernize due to high costs and risks of these new systems. China also faces a huge problem with financial fraud and needs a way to give trust back to the people.
Regulators in China believe that blockchain technology can be a way to jumpstart the traditional banks into a new era. Blockchain can help serve as a digital ledger to track information, loans, and contracts. All of these needs would reduce the human labor required for each transactions and allow for the entire country to audit the transactions. Citizens can hold high level government officials accountable to the finances of the country by having an audit trail that is nearly impossible to manipulate.
Source: http://fortune.com/2017/01/27/china-banking-fraud-blockchain/