In line with China’s active pursuit of Blockchain technology, the People’s Bank of China (PBoC) revealed that the government had allotted $4.7M (32.35 million yuan) for the development of Blockchain-based platform for trade finance. Notably, China aims to get plausible results within three years.
The news about China’s Bay Area Trade Finance Blockchain Platform was first unveiled by the central bank in Shenzhen back in September of 2018. The main goal behind the project is to create a tamper-proof ledger wherein valuable information could be safely traded between the branches of the Chinese government and businesses.
The central bank’s Digital Currency Research Lab administers the platform with the help of the Chinese Academy of Sciences and other leading banks and universities in the country. Reports published in January revealed that the Blockchain trade finance platform had already facilitated $12.4B in transactions. Thirty-eight banks and 1,900 companies are notably using the platform.
Xinhua, a Chinese news outlet, reported the significant improvement on the processing time in trade financing transactions. Before, entities have to wait for ten days for their applications to be processed. With the help of Blockchain, transactions can be completed in 20 minutes. Furthermore, the costs associated with processing had decreased by about 6%.
As claimed by the Chinese government and the PBoC, the platform primarily aims to help financial institutions, service providers and SMEs gain access to cost-efficient and sophisticated financial tools.
The latest development is another addition to the long list of Blockchain-related initiatives in China. With a president who’s in full support of the technology, the industry could only expect that new developments and projects would be unveiled anytime soon.