It’s no secret that China has been pushing hard into blockchain technologies. The latest development of this, is a blockchain trade finance platform, one headed by China’s central bank, gaining a staggering 32.35 million Yuan funding, or slightly $4.7 million. This funding is set to last them for more than three years, according to the media reports on Monday.
Changing Of The Times
The People’s Bank of China (PBC) had unveiled its new blockchain trade finance platform within Shenzhen, a city within the Guangdong Province of South China. This occurred back in September of 2018, with information put into the platform by enterprises being rendered unmodifiable after the fact. Furthermore, banks involved in the project are capable of sharing information with other departments.
The platform has only witnessed growth as time went on, with the number of companies and banks continuously on the rise after its launch. By mid-January of this year, an impressive 1,898 companies and 44 banks were linked to this platform, processing over 90 billion Yuan in various transactions. At least, this is according to the Xinhua News Agency.
Pushing Hard To Compensate
Insiders of the industry were quick to point out that this new funding allotment will only help spearhead the growth of the blockchain trade finance platform. As it stands now, it’s the highest level and most-supported blockchain project on a national scale.
Furthermore, it’s expected that the PBC will further secure the safe sharing of information and help facilitate small and medium-sized businesses (SMEs). The central bank will do this by giving them access to a broader array of financial tools in a bid to compensate for the COVID-19 epidemic, according to these insiders.
Important Things TO Remember
This trade finance project was pushed and coordinated by a group of parties, one of which being the Digital Currency Research Lab of the PBV. Other significant hands in this project, is the Chinese Academy of Sciences, the top domestic universities within China, as well as the major commercial banks of the country, according to the media reports.
While it’s all well and good, Wu Hao, an independent analyst based within Shenzhen, told the Global Times on Monday that there can still be a complication. He explained that blockchain technology’s use could crack the “isolated islands of information” that every trade scenario can suffer from. However, he was quick to state that without a matured technology and a unified industrial standard, information barriers can still pop up within various businesses.