The People’s Bank of China is pushing for the integration of blockchain technology in the domestic financial system as it pilot-tests a blockchain trade finance platform, reports 21st Century Business Herald.
The Bay Area Trade Finance Blockchain Platform was officially rolled out on recently in Shenzhen’s financial institutions for trial and testing. The testing phase of the blockchain trade finance platform will run until the desired results are met, the report added. It added the platform is a joint project between the PBoC’s Digital Currency Research Lab and the central bank’s Shenzhen branch. Also involved in the project are the Bank of China, the Bank of Communications, and the China Merchants Bank.
The choice of Bay Area in Southern China provides a strategic purpose for the central bank as the area is in an economic development zone comprised of several major cities in the special administrative regions of Macau and Hong Kong and along the Pearl River.
According to the PBoC, the trade finance platform is designed to provide seamless and efficient interbank transactions. It aims to assist small and medium enterprises (SMEs) gain access to broader financing options, including asset-backed securities.