Chinese Banking Group To Launch A New Blockchain Platform
January 7, 2019 4:02 pm
The China Banking Association (CBA), the regulatory body of the country for the banking sector has announced that it is launching a new blockchain-based platform for trade finance. Last week the association announced that the organization is in the process of rolling it out for live usage after several pilot programs aim to improve the efficiency and security of trade finance transactions.
More than ten major banks in China have signed up for the platform. The members’ names include HSBC (China), Bank of China, China Merchants Bank, Ping An Bank, China Postal Savings Bank, and more. Lending technical supports are Chinese fintech firms including PeerSafe, a Beijing-based startup focusing on distributed ledger technology and a member of the Hyperledger consortium.
The CBA included that it has completed two pilots for issuing a letter of credits (LoC) and asset-backed securities, with participation from the Industrial and Commercial Bank of China and China Merchants Bank.
Fang Xiao, Vice President of HSBC China, said:
“The launch of China’s trade finance blockchain has brought together the trade chain of different banks to make cross-bank transactions much faster, safer and more realistic.”
According to reports, the CBA has planned to include more small and medium-sized banks, as well as customs and taxation agencies to the platform.
The firm said:
“A centralized structure imposes an important cost of security and trust as it needs to combine a system’s safety, privacy and anonymity into a design …which inevitably increases the difficulty of technology improvement with even a higher cost of support. As such, we need a new decentralized technology to manage the mobile data allocation.”