Several Chinese regulators, including the Central Bank, have jointly issued a document suggesting the development of a blockchain-based trade Finance platform.
The document was authored by experts from the People’s Bank of China (PBOC), the banking regulatory Commission, the securities regulatory Commission, and the Department of foreign exchange operations. In the document, the organizations presented their proposals on how best to Finance the construction of the Great Bay area of Guangdong-Hong Kong-Macao.
The document States that in order to develop and implement better financial technologies in the region, China should create a blockchain-based trade Finance platform “subject to legal compliance”. According to regulators, the platform will help banks safely exchange information related to cross-border trade transactions.
According to the authors of the document, a decentralized infrastructure will eliminate the need for third-party interference in the exchange of trade information between participants. This will create a solid Foundation for a trade Finance information platform. Regulators also suggest using artificial intelligence and big data to reduce the risks of financial transactions.
China is implementing and offering blockchain-based solutions faster than most other countries. Last month, the Chinese Central cyberspace Commission (OCCAC) held a third round of approval for companies developing blockchain solutions. The regulator approved 224 projects at once.
Earlier, the Industrial and commercial Bank of China (ICBC) analyzed the use of blockchain in the banking sector and launched services to track transactions during the coronavirus pandemic. In addition, in April, China launched a project of a service blockchain platform for commercial use.