CITIC Bank Using Blockchain for Settlement of Creditbr>
CITIC Bank, China’s seventh-largest lender in terms of total assets, has developed a system for the settlement of credit that uses a blockchain-based electronic transmission network.
Named BCLC, the network claims to improve the efficiency of credit operations by transmitting messages within seconds. The bank said that this is the “first time the domestic banking sector block technology will be applied to the settlement of credit,” and it is optimizing the traditional banking business model for a number of elements, such as opening letters of credit, pay orders, and acceptance messages.
BCLC allows both buyers and sellers to trace the letter of credit path and eliminates the chance of fraud and system errors. The banking sector sees this as a game-changer in user experience and banking operations.
CITIC Bank said it has used BCLC to administrate real domestic letter of credit business and trading volume of more than 100 million yuan. The bank said that it will further improve the function of its blockchain-based system and expand the scope of blockchain applications by conducting more research and tests to make the technology more efficient.