Leadership & Strategy
The People’s Bank of China launches pilot blockchain platform for trials and testing
May 20, 2020
The People’s Bank of China (PBoC), the largest bank in the world by some metrics, has launched a pilot trade finance blockchain platform for Shenzhen’s financial institutions
Known as the Bay Area Trade Finance Blockchain Platform, the pilot system was launched on 4 September.
By introducing the platform, PBoC shows a committed interest in utilising cryptocurrency and related technologies despite China’s ban on initial coin offerings and digital currency trading.
According to a report by 21st Century Business Herald, translated by Cryptovest, the testing phase of the platform will be conducted until the desired results are delivered.
The platform is “a joint venture project between the PBoC’s Digital Currency Research Lab and the central bank’s Shenzhen branch. Also involved are the Bank of China, the Bank of Communications, and the China Merchants Bank”, Cryptovest reported.
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According to Cryptovest, President Ye Hao of the People’s Daily, an official newspaper of the Chinese Communist Party, said:
“The biggest significance of blockchain technology at present is its operating mechanism. Through ingenious combination of technologies, it can achieve the fair distribution of resources, thus ensuring that the community has consistent goals, and members have behavioral norms”.
He added: “This provides us with a new approach to examine problems, and come up with solutions”.
PBoC hopes that the platform will enable seamless bank-to-bank transactions as well as enable SMEs to access a broader range of financing options.