State Administration of Foreign Exchange (SAFE), the Chinese regulator has expanded its blockchain cross-border financing pilot program.
Cross Border Financing With Risk Management Applications
On Nov. 11, GlobalTimes reported that the system covers 19 provinces and cities, up from nine.
The deputy head of SAFE, Lu Lei says there are plans to use blockchain and AI technologies in cross border financing with specialized attention to risk management applications.
Experts hope that the new technology implementation will allow for efficient and effective cross border financial services. It was first launched in March, providing data verification and financial services for exports.
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.”
Transaction Process Reduced From 2 to 15 Days
Yin adds that these kinds of services allow in cutting down processing times while allowing real-time supervision. These ensure in improving the financing conditions for the exporters of China.
The transaction processing times have reduced dramatically from two days to 15 minutes.
The blockchain platform is developed by the ZhongChao Blockchain Technology Research Institute based in Hangzhou. All 20 participating commercial banks have been granted access to the system as of late October.
Source: Global Times | Image: MikeMareen / BigStock Photo