China’s “most supported and highest-level” blockchain project has just raised additional funding.
The Global Times reports that the People’s Bank of China has secured RMB32.35 million ($4.7 million) for its blockchain trade finance platform. The funding will primarily be used for research and development projects, and the funds themselves will be given to the PBOC piecemeal over the next three years.
Originally unveiled in Shenzhen back in September 2018, the platform has since linked 44 banks and 1,898 companies and has processed over RMB90 billion worth of transactions. It is purportedly the “most supported and highest-level blockchain project” at the national level, having been developed by groups including the PBOC’s Digital Currency Research Lab, the Chinese Academy of Sciences, Tsinghua University, and several major banks.
The advancement of the trade platform will reportedly play a huge role in boosting interbank transaction efficiency. That said:
The platform has helped greatly improve the efficiency of SME loan approvals – the time required to process trade financing has been shortened from over 10 days to about 20 minutes, Xinhua said, citing an official with the PBC. Corporate financing costs have also dropped to less than 6 percent.