A new platform blocking trade and finance, supported by the People's Bank of China (PBoC), has launched official pilot operations in Shenzhen, reports the local 21jingi newspaper on September 12
"Guangdong, Hong Kong and Macao Dawan The Trade Trade Finance Blockchain platform "aims to provide a blockchain-based ecosystem for cross-border trade between Guangdong, Hong Kong and the Macau Bay area. Reportedly, the platform is promoted and jointly organized by the Central Bank Digital Bank Research of PBoC and the Central Bank Shenzhen Central Branch.
21jinji cites Xu Honghui, vice president of banking transactions at Ping An Bank, saying that:
"Previously, the commercial financing costs for micro and medium-sized enterprises were between 7 and & l; 8 percent, but the blockchain system could reduce the cost to less than 6 percent. "
Honghui added that more data has been added to the platform – which includes credit, business, third-party and judicial data – "more secure the blockchain". The platform could potentially be linked in the future to governmental and logistics supervisory systems to further address the problems of asymmetry information and inadequate data sharing, both domestic and foreign.
The first phase of the platform test operation was conducted to provide funding, with the goal of solving the obstacles faced by small and micro businesses whose accumulation of credits is lacking sufficient data to obtain credible funding from financial institutions.
As explained by Hou Weirong, director general of the banking department of China Merchants Bank:
"Verifying the authenticity of the commercial background is an important part of corporate compliance." The information between banks is isolated […] to solve the problem of risk control, especially when it comes to deducting credits [as well as] if there is a problem in the supply chain, the bank has no real-time information. only through financial technology. "
The new platform aims to exploit the transparent and immutable properties of the blockchain to facilitate a regulatory system for commercial finance that allows" dynamic and real-time monitoring of various financial assets ". an example, the system could prevent the same accounts from being used to "get badly" multiple loans from different institutions, as 21jingi observes.
As previously reported, the PBoC Digital Research Lab recently extended the mandate of its activities beyond the country's capital, opening a new fintech research center in Nanjing, the capital of the eastern Chinese Jiangsu province.