The People’s Bank of China (PBoC), the country’s central bank, has secured special financing for Blockchain Trade Platform worth $ 4.7 million over the next three years. This funding would contribute to the growth of the blockchain trade finance platform, which is the most supported and highest-level blockchain project at the national level.
09 March, 2020 | AtoZ Markets – Blockchain technology has been deployed for an increasing number of applications in Chinese society in recent months. Xinhua News Agency estimated that at least 20 blockchain applications had been launched in China to contain the coronavirus. It included managing and tracking medical records, medical supplies and relief operations.
China’s Central Bank Invests on Blockchain Trade Platform
PBoC has obtained 32.35 million yuan ($ 4.7 million) in funding from its central government for its Blockchain trade platform. However, this funding will administer over three years and has allocated to research and development projects.
PBoC revealed the blockchain platform in Shenzhen in September 2018. Moreover, the platform intended to facilitate transfers and create a tamper-resistant ledger. It aims for the secure sharing of information between businesses and government departments.
The number of banks and companies participating in the platform continued to increase after its launch. In mid-January, the platform also linked 44 banks and 1,898 companies and processed more than 90 billion yuan in transactions.
SME Access to Financing Tools
The platform has helped to improve the efficiency of SME loan approvals. The time it takes to process trade finance has cut from more than ten days to around 20 minutes. Business financing costs also fell to less than 6%.
The platform administered by the PBoC’s digital currency research laboratory, the Chinese Academy of Sciences, major Chinese universities and major local banks.
The central bank should make information sharing safe and secure. It further facilitates the access by SMEs to a wider range of financing tools during the COVID-19 epidemic, they noted.
Each trade scenario can break “isolated islands of information” using blockchain technology. But if a unified industry standard and mature technology are lacking, information barriers will continue to arise in businesses, told Wu Hao, a Shenzhen-based independent analyst.
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