It now incorporates 28 banks in Shenzhen, which includes 483 bank branches. The comparatively slow adoption of technology by foreign banks appears to be inhibiting growth. Cross-border financing is provided by overseas banks, but due to the uneven development of domestic and foreign financial technology, the business volume is still small, bank representatives have stated. Hence it’s possible that currently the project is used more for regulatory compliance rather than finance.
At launch in Shenzhen, it was called the “Bay Area Trade Finance Blockchain Platform” (BATFB) and planned to target the Guangdong, Hong Kong, and Macau Areas. It was developed in conjunction with the Central Bank Digital Currency Research Institute.
The principal purposes were real-time traceability, to eliminate fraud and to reduce the need for manual transactions. Apart from regulatory monitoring, to date, the applications included on the blockchain are supply chain receivables, cross border financing and international trade supervision.
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