Nanning experiments with blockchain to improve export financing

Source:Global Times Published: 2019/10/30 14:51:39

Bitcoin Photo: VCG

Nanning in South China's Guangxi Zhuang Autonomous Region has become the latest Chinese city to experiment with a cross-border financial blockchain service platform, the Guangxi Daily reported on Tuesday, citing representatives from the Nanning branch of the People's Bank of China, the  central bank. 

The blockchain service platform is set to renovate the current trade financing process to help solve financing difficulties faced by domestic companies, the report noted. The difficulties include insufficient financing information, high verification and repeated financing. 

Nanning has joined a league of Chinese cities that have carried out financial reforms, including Xiamen in East China's Fujian Province and Ningbo in East China's Zhejiang Province, both of which have launched blockchain service platforms for cross-border finance. 

Li Zhen, founder of blockchain incubator CryptoYC, said that blockchain technologies are mostly applied to the financial sector in China. For example, blockchain technology is now being used in financial accounts keeping.

"Distributed ledgers, backed by blockchain technologies, can make up for many shortcomings in traditional book-keeping. It will largely enhance the transparency of account management and increase the efficiency of the process," Li told the Global Times. 

But blockchain is still searching for other application areas, Li said. 

Domestic cities' desire to experiment with blockchain-backed service platforms was kindled at a time when the government was calling for development of the new technology. 

Global Times 

Posted in: ECONOMY

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