China’s Central Bank PBoC-Supported Blockchain Trade Finance Platform Starts Trial
Testing Phase Begins for the People’s Bank of China Before Official Launch
There is a new blockchain platform established by the People’s Bank of China, and the platform seems ready to start testing out the protocols. The 21st Century Business Herald released a report on Tuesday that the first phase has already been started.
The new platform is being called the Bay Area Trade Finance Blockchain Platform, and the testing phase has already begun within Shenzhen, where final trials are being started.
This area of China is known for the new developments that are being established, which primarily consists of cities near the Pearl River. However, it also includes certain areas of Hong Kong and Macau where administrative efforts are thriving.
The Digital Currency Research Lab of the PBOC and the Shenzhen branch of the back are the two entities that are pushing through the trade finance endeavor. Once the project was approved to work on, multiple other commercial institutions were integrated for development, which includes the Bank of China, the Bank of Communications, China Merchants Bank, Ping’An Bank, and Standard Chartered.
With the new implementation of the platform, once the testing stage is over, the interbank transactions should become more unified. Small and medium businesses stand to gain a lot from the tools they will be allotted, like securities that are supported with real assets.
Participants on the network will be able to see all the aspects of the blockchain. With this newfound transparency, regulators will have greater information available to show them the areas of crypto and blockchain that need to be approved upon. Even fraud and risks for fraud can be minimized.
As the new efforts come from the Bay Area platform, Hong Kong’s central bank is establishing a trade platform as well. Much of the entities working on this project come from several institutions within the administrative area of China.
The project, called the Hong Kong Monetary Authority, plans to be ready for launch by September.