New Blockchain Alliance By Chinese Authorities Aims to Improve Trade Finance

Government of Shanghai teams up with six financial institutions, including China's PBoC and Bank of Communications, to build a blockchain trade alliance for the city's e-port.

  • China is almost ready to release their national digital currency, which has been in development for five years.
  • Chinese President Jinping has voiced public support for the progress of blockchain technology.

Blockchain technology is continually finding itself in different use cases, and the municipal Shanghai government is setting out to improve the use of this fintech for global trade. The collaboration is between the authorities and financial institutions, establishing an alliance that will improve the operations for trade finance. According to reports by The Block and Global Times, the members of the alliance presently include (but are not limited to) the Shanghai Municipal Commission of Commerce, Shanghai Customs, the People's Bank of China, and the Bank of Communications.

Ye Jian, a general administration official at Shanghai Customs, stated,

“This is the first blockchain application project in customs. China upholds multilateral trade and constantly improves its business environment by seeking technological innovation.”

There are already multiple free trade zones in China that have applied blockchain technology, allowing them to reduce the cost and speed of operations, while offering digital trading options.

In China, blockchain has been a popular technology, especially considering the public support from President Xi Jinping for it. Jinping stated China should be taking on a leading position in its ongoing development. Following five years of ongoing research and development, China is almost prepared to launch their own government-based digital currency.

As far as blockchain technology, Qi Hong of the China Construction Bank Shanghai branch says that the tech is still in an early phase of experimentation.

He added,

“We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn't have a sound understanding of the technology when it comes to financing. But I think the government's call for blockchain construction will help push the technology's application in a more comprehensive way.”

Yesterday, Hong Kong established a partnership with mainland China for a blockchain project that will help with trade finance operations.

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Krystle M
Krystle is an American cryptocurrency blogger that wants to see the future of crypto and blockchain technology evolve. She has been writing about cryptocurrency for about a year, with a special interest in blockchain technology and regulatory measures around the world. While away from writing and learning about the changes in the cryptocurrency industry, she likes to indulge in science fiction novels and further her experience in playing both guitar and piano.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

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