Chinese Central Bank Promotes the Use of Blockchain in Trade Finance

China’s central bank is supporting the utilization of blockchain in trade finance, following the country’s president called for the adoption of technology over various industries.

In a joint statement with the commerce commission of Shanghai on November 8, the city’s branch of the People’s Bank of China (PBoC) said blockchain could unravel asymmetries in trade finance and give legitimacy for trades, as per Reuters. Blockchain additionally brings down cost thresholds for trading institutions, especially in the import/export markets, the regulators stated.

The joint proclamation comes two weeks after President Xi Jinping approached Communist Party leadership to “seize the opportunity” afforded by blockchain innovation, looking for a top-down execution approach alongside wide-spread testing of blockchain’s appropriateness for the Chinese economy.

The PBoC is presently creating its own digital yuan, anticipated to be developed at least to some extent with blockchain innovation. Summer reports of a November release date were previously shot down by a senior official, but the undertaking is anticipated to go live soon after creation was rushed by the declaration of the Facebook-driven Libra venture.