Chinese Banks Use Blockchain Platform to Process Millions in Foreign Trade

Published at: March 11, 2020

Over 20 banks in Chongqing China have used a trade finance platform powered by blockchain to process over $56 million in foreign trade transactions. It has completed a total $460 million in export trade financing after a year-long pilot program, according to Chongqing Daily’s March 11 report.  

The blockchain platform reportedly allows stakeholders to verify export receivables, tax documents and credit information automatically, which reduces labor-intensive processes and red tape. 

Chinese regulators hope to leverage distributed technology to digitize financial data and information and share it instantly and securely. 

The trade finance blockchain platform has played a key role during the epidemic outbreak

Per the news stated that a Chongqing-based cross-border commerce firm had used the platform to complete a surgical mask-related transaction. 

Another local tech company successfully received $153 million in loans from China Construction Bank through the same platform during the epidemic. 

More financing platform based on blockchain to appear in China 

As Cointelegraph reported earlier this month, Bank of China (PBoC) has secured $4.7 million in funding from the central government for its blockchain trade finance platform for research and development projects for the next three consecutive years.

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