China’s central bank is promoting the use of blockchain in trade finance, Reuters reported.
In a joint statement with Shanghai’s commerce commission Thursday, the city’s branch of the People’s Bank of China (PBoC) said blockchain can address asymmetries in trade finance and provide authenticity for trades. Blockchain also lowers cost thresholds for trading institutions, particularly in the export/import markets, the regulators said.
The joint statement comes two weeks after President Xi Jinping called on the country’s Communist Party leadership to “seize the opportunity” provided by blockchain technology, aiming for a top-down implementation approach along with comprehensive testing of blockchain’s applicability in the Chinese economy.
The PBoC is currently developing its own digital yuan, which is expected to be developed at least in part with blockchain technology.