People’s Bank of China: “blockchain solves financial problems”
Blockchain

People’s Bank of China: “blockchain solves financial problems”

By Stefania Stimolo - 8 Nov 2019

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A statement issued yesterday by the Shanghai headquarters of the People’s Bank of China (PBoC), the Chinese central bank, says that the use of blockchain technology solves commercial authentication problems in the financial sector

According to the report, in fact, it seems that PBoC wanted to clarify the crucial points involving blockchain as a financial solution

In particular, this involves using blockchain to solve problems of information asymmetry in commercial finance and the problem of providing evidence of commercial authenticity. 

In addition, the PBoC stated:

“Blockchain technology effectively reduces financing risks for financial institutions, and lowers financing costs for importers and exporters”.

But the Central Bank of China does not seem to be the only national banking institution interested in blockchain technology. 

In fact, another report stated that several leading domestic banks have released new blockchain features for the Shanghai International Trade Single Window platform.

This is the same Shanghai branch as the PBoC, along with the Industrial and Commercial Bank of China (ICBC), Construction Bank, Agricultural Bank and Bank of Communications.

A conglomerate of banking giants in the country. In fact, the first four are the largest banks in the nation, while the ICBC is the largest company in the world, according to Forbes Global 2000.

At present, the platform seems to be managed by the city’s port office and combines institutional commercial services in one place. Not only that: it also seems that companies can use it for cross-border financing, medical supply chain traceability, customs supervision and integration of third-party trade

The report also includes the establishment of a new entity, the Shanghai Electronic Port Blockchain Alliance, with the aim of applying the blockchain to improve customs and interoperability.

This is situation clearly reflects the statements of Chinese President Xi Jinping: “China is ready to become a leading country in the development of blockchain technology”.

 

Stefania Stimolo
Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

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