Blockchain Trade Finance Platform Trial Launched By China’s Central Bankbr>
The People’s Bank of China (PBoC), the country’s central bank, is currently testing a blockchain trade finance platform, according to a report from local news outlet Shanghai Securities News.
Called “Bay Area Trade Finance Blockchain Platform,” the platform was developed by the Digital Currency Research Lab of the PBoC and the its Shenzhen branch. Major Chinese commercial banks, including the Bank of China, the Bank of Communications, China Merchants Bank, Ping’An Bank and Standard Chartered, also assisted with the development of the platform.
After two months of “closed development,” the platform has now entered the trial phase and has been deployed across financial institutions in the city of Shenzhen. The Bay Area Trade Finance Blockchain Platform is aimed at conducting trade and financing activities, such as accounts receivable and trade financing. It also provides a regulatory system for users to view and monitor in real-time financial activities.
The report said that the goal of the platform is to boost the efficiency of interbank transactions and to help small- and medium-sized businesses access a wider range of financing tools. It added that the platform can “help banks to conduct business authenticity audit[s], reduce business costs, improve business efficiency, [and] prevent and control business risk.”
The news came after the Hong Kong Monetary Authority (HKMA), the country’s central bank, announced that it will be launching its blockchain trade finance platform this month. The platform allows small companies to give their data over to major banks easily, and gain access to the same finance mechanism that larger companies use. The platform has 21 banks participating as nodes, including HSBC and Standard Chartered.