Chinese regulators have proposed the creation of a blockchain trade finance platform

Several Chinese regulators, including the Central Bank, jointly issued a document proposingdevelopment of a trade finance platform on the blockchain.

The authors of the document were experts from the People's Bankof China (PBOC), Banking Regulatory Commission, Securities Regulatory Commission and Foreign Exchange Department. In the document, the organizations presented their proposals on how best to finance the construction of the Guangdong-Hong Kong-Macao Greater Bay Area.

The document states that for the development andintroducing more advanced financial technologies in the region, China should create a blockchain-based trade finance platform “subject to legal norms”. According to regulators, the platform will help banks securely exchange information related to cross-border trade transactions.

According to the authors of the document, decentralizedthe infrastructure will eliminate the need for third-party intervention in the exchange of trade information between participants. This will create a solid foundation for the trade finance information platform. Regulators also suggest using artificial intelligence and big data to reduce the risks of financial transactions.

China implements and offers solutions based onblockchain faster than most other countries. Last month, China's Central Cyberspace Commission (OCCAC) held its third round of approval for companies developing blockchain solutions. The regulator approved 224 projects at once.

Previously Industrial and Commercial Bank of China(ICBC) has analyzed the use of blockchain in the banking sector and launched services to track transactions during the coronavirus pandemic. In addition, in April, China launched a blockchain service platform project for commercial use.

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