People’s Bank of China’s blockchain trade finance platform enters trial phase
According to a report published by Shanghai Securities News, the People’s Bank of China (PBoC) has officially launched the testing phase of a blockchain trade finance platform. The main aim of this platform is to facilitate financial transactions and trading.
The Shenzhen Central Sub-branch of the People’s Bank of China has entered the trial phase of the so-called “Bay Area Trade Finance Blockchain Platform.”
The platform is aimed at conducting financial activities, such as accounts receivable and financing activities. At the same time, the blockchain-based platform also provides a comprehensive regulatory system for trade finance to enable real-time monitoring of various financial activities.
The report also states that the platform plans to create an “open financial and trade ecosystem based on the Guangdong, Hong long, and Macau Bay Area.” The main stakeholders in the platform are Bank of China, China Merchants Bank, Ping An Bank, Standard Chartered Bank, China Construction Bank, and BYD Co., Ltd.
The report explains that the platform can “help banks to conduct business authenticity audit[s], reduce business costs, improve business efficiency, [and] prevent and mitigate business risks,” as well as to assist regulators and strengthen information sharing between various departments.
China keen to harness the potential of blockchain
It’s not the first time that Chinese institutions are trying to make a foray into the world of blockchain. Earlier this year, Chinese insurance and financial services giant, Ping An Insurance released a “Whitepaper on Smart Cities,” which talks about in detail about the use of blockchain, AI, IoT and cloud computing in creation of a smart city.
Chinese authorities are more than serious in making use of the latest developments in this ever-evolving space. In July, the ministry of Science and Technology of China announced that it would lead an international group on the standardization of IoT and blockchain.
The central government’s encouragement of this new technology through its local governments shows China’s continuing emphasis on innovation and startups. Through the cryptocurrency ban, the CCP has clearly distinguished between blockchain and cryptocurrency, and reaffirmed its commitment towards developing this new innovation.
Image via Shutterstock
Join our Telegram group