China Widens Trial of its Blockchain Powered Trans-Border Funding Platform
State Administration of Foreign Exchange (SAFE), a Chinese regulator, is expanding its blockchain powered trans-border funding trial program. The program now encompasses 19 provinces and cities, an increase from nine.
The change is understandable as Lu Lei, deputy head of SAFE, stated in October end that there are intentions to employ blockchain and artificial intelligence in cross border funding with specific devotion to applications managing risk.
According to report, anonymous experts believe that the blockchain deployment will facilitate the creation of additional efficient and secure cross-border financial services.
The venture, initially unveiled in March, offers funding services for exports and data validations for global enterprises.
Blockchain analyst Cao Yin told the outlet:
“The traditional financial processes, which require a lot of human labor to carry out information verification and authorization, leave a lot of room for financial fraud. […] As the blockchain system promises a decentralized and encrypted track of each capital flow, it leaves potentially little to no space for human mediation.”
Yin also elaborated that the platform brings down the handling time and facilitates real-time monitoring, which considerably enhances financing criteria for Chinese exporters. The transaction handling time has been decreased from two days to 15 minutes.
The system deploys the blockchain platform built by the ZhongChao Blockchain Technology Research Institute based in Hangzhou. By the end of last month, all partaking 20 commercial bank branches in the scheme have been given access to the platform.
Notably, last month, SAFE’s chief accountant Sun Tianqi requested regulators across the globe to coordinate on negating unlawful cross-border dealings.