China allocated $5 million for trading blockchain platform

by in Blockchain News

PBC China blockchain trade DLT

The People's Bank of China has allocated ¥32.35 million ($4.7 million) to its DLT platform for trade finance. This was reported by the Global Times.

Sources of the Global Times believe that 3-year funding will strengthen the security of the information exchanged and facilitate the access of small and medium-sized businesses to a wider range of financial instruments.

According to Xinhua News Agency, the DLT platform has helped significantly improve the efficiency of approving SME loans - the time for processing trade financing has decreased from more than 10 days to about 20 minutes. Corporate finance costs decreased by almost 6%.

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After the launch in September 2018, by mid-January, 44 banks and 1898 companies managed to become participants of the blockchain platform. According to Xinhua, the total volume of transactions over this period exceeded ¥90 billion ($12.95 billion).

DLT's development is jointly carried out by the digital currency research laboratory of the country's CB, the Chinese Academy of Sciences and a number of leading universities.

Recall, that at the end of January financial company Huatai Securities published a report on the details of the payment system and digital currency of China's CB under development called DCEP (Digital Currency Electronic Payment).

“Unlike digital currencies within a decentralized system such as bitcoin, DCEP uses a centralized management system,” the document said. DCEP as an electronic form of the renminbi will be controlled by the People's Bank of China but issued through several commercial banks. You can read more about it in our article "China disclosed details of the digital yuan issuance".

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Also recall, that recently the Reserve Bank of India planned to file a motion to review the Supreme Court's decision to regulate the first crypto coin and other cryptocurrencies. The regulator fears that the decree could lay the foundation for crypto trading and jeopardize the country's banking system. You can also read about this in our article "India's CB challenges Supreme Court order on cryptocurrency".