PBOC’s Blockchain-driven Trade Finance Platform to Receive 32.35 Million Yuan in Funding

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The Chinese central bank’s blockchain-driven trade finance platform is set to receive over 32 million yuan (approx. USD$4.6 million) in funding over the next several years.

The People’s Bank of China’s (PBOC) “Trade Finance Development Platform Key Technology Research and Development and Application Demonstration Project” (贸易金融开发平台关键技术研发与应用示范项目) will receive 32.35 million yuan in funding over the next three years following approval from the central government.

Domestic observers expect the project to serve as an accelerator for PBOC’s Cen­tral Bank Trade Fi­nance Blockchain Plat­form (央行贸易金融区块链平台), which first commenced trial operation in Shenzhen in September 2018.

As of mid-Jan­u­ary 2020 the Cen­tral Bank Trade Fi­nance Blockchain Platform had hosted over 8000 op­er­a­tions for 1898 en­ter­prises, with a to­tal op­er­a­tions value of over 90 bil­lion yuan, ac­cord­ing to data from the Peo­ple’s Bank of China (PBOC). 44 Chinese banks and 485 of their out­lets are par­tic­i­pants in the plat­form.

PBOC said that in fu­ture the Plat­form will con­nect to sim­i­lar plat­forms in a greater num­ber of coun­tries and in­ter­na­tional or­gan­i­sa­tions, with the goal of cre­at­ing a “global trade fi­nance high­way.”

“Trade fi­nance re­quires the shar­ing of in­for­ma­tion be­tween mul­ti­ple par­ties to trans­ac­tions, and trans­ac­tion fre­quen­cies aren’t high,” said Di Gang, vice-head of PBOC’s Dig­i­tal Cur­rency Re­search In­sti­tute. “This is a nat­ural fit for blockchain tech­nol­ogy.”

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