China has announced plans to launch a blockchain-powered cross-border financial service platform in the province of Guizhou.
The Guizhou Branch of the Export-Import Bank of China recently issued the first cross-border financial blockchain business in Guizhou Province. The smooth issuance of the financing funds marked a successful connection and formal operation of the bank's cross-border financial blockchain platform, managed by the State Administration of Foreign Exchange.
As a policy bank, the Export-Import Bank of China has been actively involved in the cross-border financial blockchain platform. According to a report by Haiwainet, The Guizhou Branch of the State Administration of Foreign Exchange held several meetings in July, exploring business models and reviewing the challenges faced by private, small, medium, and micro-businesses.
Further information from the news outlet revealed that, in mid-July 2020, the bank issued export receivable accounts financing to Guizhou Dongyi Electric Industrial Co., Ltd., a major foreign trade enterprise in Tongren City. This financing was implemented through the state bank, under the guidance of the foreign exchange commission. The bank used the blockchain platform to check for false financing, over-financing, and re-financing, thereby solving bank-enterprise information asymmetry. They were also able to successfully review all aspects of the application within two working days and disbursed 7.76 million yuan in export financing.
The province of Guizhou hopes that the platform's launch will help alleviate the financing difficulties of private, small, medium, and micro foreign trade companies. They also expect the platform to improve the level of financial technology services for the real economy, simplify complex procedures such as manual operations by banks and on-site verification of documents, and significantly shorten the financing issuance cycle.
Source: Cryptonews
