People’s Bank of China aids in the adoption of blockchain based trading
People’s Bank of China Headquarters – Beijing, China
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China strengthens its stance on blockchain by creating a new finance platform with the assistance of the People’s Bank of China.Tweet this
Since the infamous ICO ban in China of last September, many have had the impression of crypto being stamped out by the world superpower. However, this is a somewhat unwarranted projection, as China has actually been quite receptive to the idea of the underlying blockchain technology.
This reality is further illustrated by an announcement from The Global Times that the so-called “Guangdong-Hong Kong-Macao Great Bay Area Trade Fi-nance Blockchain Platform,” backed by the Peoples Bank of China, has been implemented in a trial operation in Shenzhen, China. The platform will be used to explore cross-border transactions and decrease financial costs for businesses in Shenzhen.
According to the iReseacher analyst Li Chao:
China has been cracking down on activities using virtual currencies, but blockchain is a quite advanced technology which has been adopted by many countries. So China will definitely not lag behind.
Li went on to explain that the platform could reduce cross-border trading costs for small to medium-sized enterprises from 8% to well below 6%. It can also provide incredible time-saving in trade financing, a process which currently takes weeks but could be shortened to under 20 minutes with the use of blockchain technology.
Although regulations in the blockchain space have most certainly become more stringent, these are the exact steps that need to be taken so that blockchain may continue its progress towards legitimacy and true mass adoption of the technology.
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