China continues to implement blockchain technologies at the state level and creates a new financial and trading platform with the support of the country’s central bank.
The People’s Bank of China (PBOC) recently launched a blockchain test called Guangdong-Hong Kong-Macao Great Bay Area Trade Finance in Shenzhen, Guangdong Province.
Li Chao is a financial analyst from the Pekin blockchain company iResearch, described how the new development can help the economy and business in the country:
"China imposed a ban on activities related to virtual currencies, but the blockchain, from the authorities’ point of view, is quite advanced technology, which is adopted by many countries. PBOC is currently creating a site based on a distributed registry that will provide a more efficient and secure system for exchanging information between financial institutions, and is expected to reduce the time and costs of financing small and medium-sized businesses. "
Regarding time saving, Chao explains that it usually takes two weeks to complete a traditional round of funding. With the help of a blocker, the process will take about 20 minutes. This is a fairly sharp reduction in time, which, in turn, will affect the cost reduction.
Xu Honghui, vice president of banking operations at Ping An Bank, explained how technology is useful for enterprises:
“Earlier, the expenses for financing trade of small and medium-sized enterprises were about 7% -8%, but the block system can reduce the cost of these operations to 6% or lower.”
Recall last week, the Chinese government agency responsible for social services, announced plans to implement blockchain technology to modernize the current system of tracking charitable activities in order to improve transparency in the field of public donations.
Also worth noting that recently one of the largest private commercial banks in China, Zheshang Bank, issued securities worth $ 66 million on its own blockchain platform.