A number of governing entities in China recently came together to issue an official document, proposing the development of a blockchain-based trade finance platform.
Contributors included the People's Bank of China, the China Banking Regulatory Commission, China Securities Regulatory Commission, and the Foreign Exchange Bureau.
In the document, the four organizations submitted their opinions on how best to finance the construction of the Guangdong-Hong Kong-Macao Greater Bay Area, with an emphasis on global trade and finance.
Disrupting how cross-border trade info is shared
In an attempt to develop and implement better financial technology in the region, the proposal states that the country should build a blockchain-powered trade financing info service platform “under the premise of legal compliance and commercial voluntariness.”
The platform, they stated, would help participating banks securely share information pertaining to cross-border traders through a reliable source.
Blockchain’s decentralized infrastructure makes third-party intervention unnecessary when sharing trade info between members. This makes for a highly secure foundation for a trade finance information platform.
They further proposed the use of artificial intelligence and big data in marketing, risk prevention, and financial supervision.
China is going both local and global on blockchain
China is spearheading blockchain innovation faster than most other countries. Both its local and central governments are consistently experimenting to disrupt various industrial sectors.
A Cointelegraph report from April cited that the government launched its first blockchain platform for providing government services in the eastern China province of Anhui. The platform was intended to provide electronic certificates and licences.
China also recently launched a Blockchain-based Service Network that allows companies from all over the globe to develop and run blockchain applications.
Additionally, during a meeting with the Financial Technology Committee yesterday, the People’s Bank of China deputy governor, Fan Yifei, urged China to accelerate its blockchain adoption strategy.