The China Banking Association (CBA) successfully launched the China Trade Finance Inter-Bank Trading Blockchain Platform on December 29.
The blockchain-powered platform is established to enhance trade finance activities, manage financial risks, and make China banking industry ahead of the developing industry.
The announcement stated that after several tests of the pilot programs, the platform is now ready for live use. The tests were meant to ensure that the platform could function properly without problems.
At present, there are already 10 major Chinese banks that have signed up to use the new trading platform and agreed to the initial network tests. The banks include the Agricultural Bank of China, the Industrial and Commercial Bank of China, and the China Construction Bank. Furthermore, the announcement stated that the platform was used to make an “inter-bank domestic letter of credit chain” between China Merchants Bank and Industrial and Commercial Bank of China.
Vice president and head of industrial and commercial finance at HSBC China Fang Xiao said, “The establishment of this inter-bank platform can be described as extraordinary, opening up barriers between different banks and realizing the interflow of information flow.”
For quite some time now, the banking sector in China has been exploring blockchain technology and how they can use it in advancing the banking industry. In fact, in March 2017, China’s Ganzhou Bank launched a billing platform powered by blockchain. The platform intends to “increase reliability and speed of transactions for financial services within the country.” Moreover, in July 2018, the Industrial and Commercial Bank of China was securing a patent for a system that is powered by blockchain that could help enhance the activities of trading financial assets.