In previous weeks, the China crypto space has suffered several blows such as WeChat shutting down crypto-related media and the government officially banning crypto-related activities. But nevertheless, China seems very focused on the underlying blockchain technology.
But this week, it was reported that the Shenzhen Central sub-branch of the People’s Bank of China, the central bank of the PRC, has officially launched the testing phase of the Bay Area Trade Finance Blockchain Platform Project. The project is a new blockchain platform will financially link Guangdong, Hong Kong and Macau and a Chinese fintech lab tests a central bank digital currency.
According to Asia Times, the new system is intended to conduct trade and financing activities, including accounts receivable and trade financing, while providing a regulatory system to enable real-time monitoring of various financial activities.
Shanghai Securities News said that the system will be an “open financial and trade ecosystem based on the Guangdong, Hong Kong, and Macau Bay Area,” and will link a network of financial organizations that include China Construction Bank, China Merchants Bank, Ping An Bank, Standard Chartered Bank and BYD.co.
Local analysts believe that the benefits will include the formation of a market trust mechanism, solving financing difficulties of SMEs, assisting banks to conduct business authenticity audits, business costs reductions and improved efficiency. Also, the platform should help supervisory authorities to enhance regulatory tools.
The Financial Times reports that China has already 40 over blockchain patent applications related to the development of a central bank crypto-currency making them a global leader in blockchain patent submissions. It is reported that online commerce giant Alibaba has filed for more than 10% of the world’s blockchain patent applications. China is already ahead of the US in terms of blockchain patent applications and it seems like they will be the leader for blockchain patent submissions in the future too.
Image Credit: Time Out Beijing