The People’s Bank of China (PBoC), which is the central bank of the country, has its own blockchain trade finance platform. This blockchain trade finance platform is in Shenzhen, south China’s Guangdong Province as the country’s central bank itself revealed in 2018.
According to the report of Global Times published on Monday, this blockchain trade finance platform is getting $4.7 million worth 32.35 million yuan in special funding from the central government of China. According to the report, the funding is for key research and development projects over the next three years.
Funding will drive the growth of the platform
China’s central bank aims to develop and grow further its blockchain trade finance platform. Some industry insiders believe that the funding will be helpful for the growth of this platform. The bank wants to make sharing information safe and secure. According to the report:
The central bank is expected to make sharing information safe and secure and further facilitate small and medium-sized enterprises (SMEs) access a wider range of financing tools during the COVID-19 epidemic.
A Chinese media outlet Xinhua reports that since its launch, several banks and companies have joined this platform. The report claims that the platform has processed more than $12.4 billion in transactions by mid-January for the 38 banks and almost 1900 companies.
Furthermore, the importance of this platform lies in the fact that it has helped to shorten the time which is required for processing trade financing from 10 days to 20 minutes. Apart from this, the costs for corporate financing have also been dropped to 6%.
Several parties such as the Digital Currency Research Lab of the PBC, major commercial banks in the country, the Chinese Academy of Sciences and top domestic universities like Tsinghua University, are administering this platform.