The People’s Bank of China (PBOC) said that it supports a blockchain-supported trade financing information platform. China’s central bank proposed the platform for the Guangdong-Hong Kong-Macao Greater Bay Area.
Several governing entities in China recently joined hands to issue an official document. They propose the development of a blockchain-based trade finance platform. Some of the notable contributors include the China Banking Regulatory Commission, the Foreign Exchange Bureau, the People’s Bank of China, and China’s Securities Regulatory Commission.
The four organizations submitted their opinions in the document suggesting how best to finance the development of the Guangdong-Hong Kong-Macao Greater Bay Area. Notably, the report emphasized on global trade and finance.
Cross-Border Trade Info Sharing Disruption
The proposal says that the country should create a blockchain-powered trade-financing information service platform to develop and implement enhanced financial technology in the area “under the premise of legal compliance and commercial voluntariness.”
They said that the platform would allow the participating banks to share information about cross-border traders via a reliable source securely. Blockchain’s decentralized network makes third-party intervention non-essential when a need arises to share trade information between members.
That makes for a majorly, secure foundation for a trade finance information platform. Also, they suggested that artificial intelligence should be used, and big data marketing, risk, prevention, and financial supervision should also be implemented.
China is Going All Into Blockchain
China is at the forefront of blockchain innovation and is embracing the nascent technology faster than most other countries. Both the local and central governments are continually experimenting with how technology can disrupt and enhance different industrial sectors.
A report from April cited by the Chinese government unveiled its maiden blockchain platform for offering government services in the eastern China province of Anhui. The platform was meant to provide electronic licenses and certificates.
Recently, China also set up a Blockchain-based Service Network that enables companies from around the world; to create and operate blockchain operations and applications. During a Financial Technology Committee meeting on March 13; the PBOC deputy governor, Fan Yifei, persuaded China to accelerate its blockchain adoption strategy.
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