Nearly 20 pilot banks in Chongqing have actively used cross-border financial service blockchain service platform (Cross-border blockchain platform) to provide cross-border payment and financing services for Chongqing trading enterprises.
Since 2019, Chongqing and Shanghai are two of a handful of major cities in the country that began piloting the cross-border blockchain platform. As of March 9, a total of US $ 56.36 million in foreign exchange payments for service trade had been processed and US $ 460 million in export trade financing had been issued.
Each pilot bank successfully the platform in the 3 application scenarios namely: Export Receivables Trade Finance Verification, Service Trade External Payment Tax Filing Information Verification, and Enterprise Cross-Border Credit Information Authorisation Verification.
The blockchain platform reportedly allows stakeholders to verify export receivables, tax documents and credit information automatically, which reduces labor-intensive processes and red tape.
China’s foreign exchange and banking regulators hope to digitise financial data and information using distributed technology that allow information to be shared securely and in real-time.
A spokesperson from the authorities explained that the biggest advantage of having the cross-border blockchain platform is that it streamline processes and improve efficiency through data sharing, and that it simplifies complex and labour-intensive import and export financing operations.