The People’s Bank of China (PBoC) has raised $ 4.7 million in financing from China’s central government for its blockchain platform for trade financing. Funding is managed over a three-year period and is intended for research and development projects.
The blockchain platform was initially unveiled in September 2018 by the PBoC in Shenzhen. The platform is intended to facilitate transfers and to create an inviolable ledger for secure information exchange between companies and government departments.
In mid-January, it was estimated that the platform had processed $ 38.4 billion in transactions for the 38 banks and nearly 1,900 companies that had signed up to use the platform.
Chinese media outlet Xinhua claims that the platform has shortened the time needed to process trade finance from around 10 days to just 20 minutes. The costs incurred through corporate financing carried out using that platform are also reported to have fallen by around 6%.
The platform is managed by the Digital Currency Research Lab of the PBoC, the Chinese Academy of Sciences, leading Chinese universities and large local banks.
Blockchain technology has been implemented for an increasing number of applications throughout Chinese society in recent months.
On March 2, Beijing launched a blockchain-based electronic parking billing system. The Beijing tax authorities indicated that blockchain billing will gradually roll out into all city car parks to promote paperless billing, and adds that it plans to implement blockchain billing in more sectors in the future.
In the first half of February, Xinhua estimated that at least 20 blockchain applications were launched to help with the Chinese government’s efforts to control the corona virus – including managing and tracking health records, medical supplies, and relief efforts.