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Blockchain Technology

costs. The monitoring system via blockchain is even better, since each transaction is

linked with high-security codes and the ledger system, with each transaction pub­

licly checked by a network user group and the distributed ledger being tamperproof.

In recent years, some countries’ regulators and policymakers have begun to

attach importance to developed and developing countries’ blockchain technology

to keep up with the technology and close the development gap. Developed coun­

tries are also at the forefront of financial technology, such as the platform’s recent

substantial investment in integrating transactions for blockchain systems in Europe,

North America and East Asia. Gradually, this technology is being applied. Banco

Santander’s Spanish banking group has applied blockchain technology to its One

Pay F.X. (Santander, 2019) payment system. Morgan Stanley (2018) has invested in

blockchain for the United States to catch the potential trend by setting up a company

to study and apply this technology. Similarly, for the seven largest European banks

(Deutsche Bank, HSBC, KBC, Natixis, Rabobank, Societe Generale and Unicredit),

IBM is developing dedicated blockchain technology for efficient foreign trade. For

the Asian market, China is leading blockchain research and application; as early as

2017, 12 out of 26 Chinese banks confirmed that they were using blockchain applica­

tions (People’s Bank of China, 2017).

Seizing the benefits of blockchain transactions, primarily through the spillover

of foreign bank productivity that will take place in developed countries, will bring

foreign banks with modern technology to developing countries, creating interaction

with domestic banks. IBM cooperated with the Thai government to implement block­

chain technology in government bond management. Some banks such as Bangkok

Bank, Krungthai Bank, Kasikorn Bank and Siam Commercial Bank (The Bank of

Thailand, 2020). Similarly, Krungsri (Bank of Ayudhya Pcl.) became the first bank

in Thailand to offer blockchain-based real-time international money transfers, and

this is considered an essential platform for the bank to focus on future development.

India is also making many efforts to make its economy more transparent and

reform-oriented, with Indian banks relying on blockchain technology to carry out

transactions (Dhar and Bose, 2016). Also, overseas transactions, remittance transfers

and other virtual currency payment procedures have been performed at ICICI Bank,

Access Bank and Yes Bank. Most importantly, blockchain has been at the forefront

of technology and growth activities in the Indian market and has also participated

in the Morgan Stanley Blockchain Network (Dhar and Bose, 2016). Additionally,

domestic banks have also strengthened cooperation to take advantage of the rap­

idly growing Indian economy, with 11 significant banks setting up a joint venture

to cooperate and operate a blockchain lending system for small and medium-sized

enterprises (SMEs). In contrast, the State Bank of India (SBI) has the support to

establish these activities (Manikandan, 2019).

To accept the technology trend in developing countries in Africa, banks here have

continuously promoted innovation and mobile payments in some areas and have the

potential for innovative technology. The everyday lives of Africans have significantly

changed. The World Bank (2017) estimates that many blockchain startups in Africa

have adapted to this trend, such as Kenya’s Bitcoin and Bitcoin, Ghana’s Bitcoin

Exchange, Lono and Ice3X platforms, and GeoPay, BitSur and Chankura, which