Various countries have started leveraging the blockchain technology for cross-border payment settlements. The most recent example is China which is going to utilize blockchain for ensuring smooth and transparent cross-border payment settlements in the “Greater Bay Area”. This area consists of Hong Kong, Macau, and Guangdong.
Guangfa Bank launches Blockchain-based cross-border financial system
Recently, Guangfa Bank, which is considered to be one of the major commercial banks present in mainland China, has introduced the first-ever cross-border financial settlements system based on blockchain technology.
This new blockchain banking platform will now enable easy cross-border payment settlements in the Greater Bay Area. The blockchain technology will help China to lower the cross-border finance barriers in this area.
The services provided by this blockchain banking platform include the cross-border credit information authorization verification service and a customs declaration information service.
Greater Bay Area to turn into an economic hub
According to a local report, this is all an essential part of Beijing’s plan to ease the finance barriers during the cross-border trades and payment settlements in the Greater Bay Area. Beijing actually wants to make the Greater Bay Area an economic hub. The new blockchain-based banking platform will help to unify this area.
Beijing actually considers this area very crucial for China because it can prove beneficial for the overall growth of China in the coming years.
Three regions present in the Greater Bay Area the mainland China, Hong Kong, and Macau does not have a single legal system rather they have three which makes it impossible to create trust between them. Therefore, Beijing wants to turn the Greater Bay Area into an economic hub by unifying these regions with the help of blockchain technology. It will also give a boost to the mainstream adoption of blockchain technology.