Chinese province, Hainan, joins the blockchain ecosystem with the announcement of a pilot program of a cross-border financial services platform.
According to Hainan Daily, the central government approved the initiative, allowing banks to provide loans to companies that look to export their products abroad.
The measure seeks to reduce the bureaucracy of customs procedures while reducing the number of loan applications through regular channels.
Initially, the pilot program will select two banks to carry out business through the blockchain-powered platform. According to report the first export account was traded successfully through the system.
Under the guidance from the Hainan branch of the Foreign Exchange Bureau, the local office of the Bank of China relied on the blockchain platform to successfully send money from a company in Hainan.
The platform reportedly has a number of significant advantages. One involves the use of tamper-proof blockchain data through authentication functions for customs declaration forms. This simplifies the process, improves efficiency, and reduces the processing time significantly.
The Hainan Provincial Branch of the Foreign Exchange Bureau will seek to strengthen the use of blockchain in cross-border payments services based on the results of the pilot program.