China's foreign exchange regulator has piloted blockchain to tackle inefficient cross-border trade financing

According to Coindeskreports, aimed at addressing inefficiencies in cross-border trade finance.

According to media reports, the state administration of foreign exchange (SAFE) has cooperated with the hangzhou blockchain technology institute to build an open blockchain platform that USES multi-signature technology to protect the privacy of trading content and only discloses details to relevant companies and regulators (such as customs, taxation, industry and commerce, etc.).

Before that, China's import and export financing usually used manual operation, paper documents and other methods to deal with this extremely complex industry in a traditional way. This is often accompanied by low efficiency, high error rate, high operational risk and other problems, thus raising the cost of financing. Putting financial data on a distributed network allows information to be Shared transparently and in real time, the report said.

The foreign exchange regulator's blockchain platform focuses on export receivables, allowing companies to enter data on financing, auditing, loan repayment and manage the whole process. The system can also further automate the verification of customs documents and calculate the final balance of declarations, preventing double or excessive financing, the report said.

With the initial development completed, safe will pilot the blockchain platform in the three major trading provinces of jiangsu, zhejiang and fujian, as well as in Shanghai and chongqing.

The pilot will last six months and is expected to be rolled out nationwide, with many Banks said to be participating.

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