As per the report, initiated by SAFE, the platform was completed in collaboration with the Hangzhou Blockchain Technology Research Institute, aka China Banknote Blockchain Technology Research Institute. Reportedly, the latter completed the technical undertaking of the project under the China Banknote Printing and Minting Corporation, which is directly affiliated to the People’s Bank of China (PBoC).
China’s current traditional import and export trade financing system is largely based on manual, paper-based processing and is reportedly plagued by low operational efficiency and asymmetrical, incomplete data sharing. In order to tackle the complex logistics of trade financing transaction management more efficiently, data could be recorded on a cryptographically secured distributed network that will allow real-time and transparent data sharing.
In short, it will further improve operational efficiency, security and reduce costs. Reportedly, the platform has the capacity to manage the entire trade financing process including automated verification for the authenticity of customs documents and corresponding financing balances, preventing double or excessive financing.
Lending comprehensive regulatory management, the blockchain systems could ensure that participants’ data is only visible to counterparties, regulators, or other approved entities, as per the report. Since the development of the platform has been completed, SAFE now intends to pilot the project for six months in three major trading provinces namely Jiangsu, Zhejiang and Fujian and two cities, Shanghai and Chongqing.
The platform is expected to be promoted nationwide after the pilot’s completion and will reportedly add support for further business scenarios such as draw participation from numerous major banks, including the Bank of China, the report states.