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Peoples Bank of China pilots blockchain trade finance platform

Friday 14 September 2018 00:30 CET | News

A new trade and finance blockchain platform backed by the People\s Bank of China has started official pilot operations in Shenzhen, China.

The “Guangdong, Hong Kong and Macao Dawan District Trade Finance Blockchain Platform” aims to provide a blockchain-powered ecosystem for cross-border trading across Guangdong, Hong Kong, and Macau Bay Area. The platform is reportedly being jointly promoted and organized by the PBoC’s Central Bank Digital Currency Research Lab and the Central Bank Shenzhen Central Branch.

The first phase of the platform’s trial operation is reportedly being run to provide supply chain financing, aiming to resolve hurdles that face small and micro enterprises whose credit accumulation lacks the sufficient data to credibly secure financing from financial institutions.

The new platform aims to leverage the transparent and immutable properties of blockchain to facilitate a regulatory system for trade finance that achieves real-time monitoring of financial activities. In one instance, the system could prevent the same accounts being used to maliciously obtain multiple loans from different institutions.

 


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Keywords: Peoples Bank of China, blockchain, trade finance, trade finance platform, supply chain finance, Guangdong, Hong Kong and Macao Dawan District Trade Finance Blockchain Platform
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Countries: World