New PBC-Backed Guangdong-Hong Kong-Macao Great Bay Area Trade Finance Blockchain Launches
The Central Bank of China in Support of the Development of a New Trading Platform
Despite most countries being against cryptocurrencies and giving crypto-traders a hard time as a whole, there are still many among them and others that are supporting the technology behind this industry. Amazingly, one of those countries is China. China has been in the front line to ban digital coins, but is now supporting allowing the signing of various blockchain-related patents that are promoting the growth of this industry.
People’s Bank of China (PBoC) is supporting a platform called Guangdong-Hong Kong-Macao Great Bay Area Trade Fi-nance Blockchain, that is going to handle several financial and transactional aspects that small to medium companies deal with.
Li Chao, an analyst at iResearch, a Beijing based consultancy, told Global Times on Wednesday that even though China has been following up and restricting activities related to virtual currencies, the country realizes the extent to which the blockchain technology has advanced and how many countries are adapting the same. He says that China in that case cannot afford to be left behind. Li added that this technology is probably going to make sharing information safe and secure and also help in reducing the operational costs for micro-to-medium sized firms
According to the report, normally, it takes about two or more weeks to have just one round of trade financing completed. Blockchain, with its advanced technology promises more that this as the same transaction can be carried in a matter of 20 minutes. The cost of operation is also going to drop significantly according to the Vice President of the Transacting Division of Ping an Bank:
Initially, the cost of trade financing for micro-to-medium-sized firms was ranging from 7% to 8%. With the implementation of the blockchain technology, this cost will go below 6%.
Considering the cost, it would take to transform the existing established system, Li affirmed that they would first attempt the new technology on users from the Greater Bay.