The country of China is moving at a rapid pace to adopt blockchain technology in many government sectors, not to mention the development of many private companies for solutions also based on blockchain technology.

Recently announce The People’s Bank of China (PBoC) is developing a blockchain-powered trade finance platform for several regions:

• Guangdong Bay area.
• “Hong Kong”.
• Greater Macau.

The move is designed to improve fintech in these areas.

The proposal came as a result of a consultation process held by several agencies from Chinese banks, the Foreign Exchange Bureau and the China Securities Regulatory Commission.

The proposal carries plans to develop a blockchain-based platform for trade finance to be delivered on the basis of legal compliance.

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The proposed new platform is intended to allow participating banks to securely exchange information on the blockchain without the need for a third party to verify it, as well as to allow the automation of transactions through smart contracts and artificial intelligence in addition to providing risk management and financial supervision tools.

Proposals are being worked on by the central bank as well as other stakeholders jointly to integrate blockchain solutions into trade finance.

The new technology will allow parties across supply chains to secure core financing, while improving efficiency and reducing risk to creditors.

The development of a blockchain trade finance platform is the latest in a series of projects the Chinese central bank is working on.

The Chinese government restricts cryptocurrency and prevents its circulation by citizens, but it is among the first governments in developing and adopting blockchain technologies.

For information, the Chinese Central Bank is in an advanced stage of developing a special digital currency (the digital yuan), as some reports indicate that the Chinese Central Bank will soon launch it for consumers and companies.

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