Chinese bankers are adapting to the new blockchain technology to help combat financial fraud in their country. The idea came from the non-transparent and non-automated process that Chinese banks use to verify documents and other statement that come through their doors. Demand for the recent bitcoin defined technology has been on the rise in China, having sharp increases in YoY growth and over $1.5 billion in total investments over the years. Transactions become more parallel and transparent by storing back data in crypto-encoded blocks away from corruption. Some of the fraudulent acts that occur include replacing real documents with newspapers to use the documents to increase margin or tampering with transaction detail that happens and cannot be traced. The conception of blockchain technology would eliminate the amount of fraud that occurs in a certain corporation but would many of the corrupt economies follow the same trend as technology? China, U.S and other developed nations that fight fraud within finance benefit from this technology but those who don’t prioritize countering fraud would actually benefit from not using blockchain technology. There is no doubt that more and more banks will adapt to blockchain only those who practice finance ethically will know to properly use it.
Edited 2/27/17 URL: http://venturebeat.com/2017/01/26/chinese-banks-are-using-blockchain-to-fight-fraud/
Blockchain definitely appears to be a strong solution to many of the types of frauds that occur with current systems. It will be interesting to see if fraudsters will be able to adapt to the new blockchain systems and discover new methods of exploiting the developing system.