Recently, a blockchain-backed cross border platform pilot was implemented in the Chinese city of Qingdao. The companies involved have now made their first trades with partners in North America and Southern Asia.
As reported on April 22 by local newspaper, Sina, the companies are praising the pilot program, and claim that the city’s banks will continue to improve the service.
Trades made with other countries via blockchain
About 37 Qingdao businesses have done business with foreign enterprises through the blockchain platform, located in the United States, Mexico, India, and a number of other countries.
Sina reported that the pilot platform managed to verify corporate credit information, authenticate export and finance loans, and manage electronic tax filing forms. In total, the transaction handled millions of dollars in under 10 minutes.
This duration is significant, considering that previously, trade processes of this kind took approximately 12 hours. Companies also had to go to customs offices to complete the process.
Companies praised the pilot program
Financial personnel of Borec Brake System Co., Ltd., a Qingdao-based vehicle brake manufacturer company involved in the pilot program, commented:
“We really didn’t expect that trade finance lending is so fast, and the operation is so convenient. Thanks to the cross-border financial blockchain service platform, our company’s urgent needs have been solved.”
City officials told Sina that they would continue to strengthen the trade pilot program, in addition to seeking to expand the network to other banks. Still, for now, they will be focused on increasing the number of available applications on the platform.
A representative of the Qingdao’s branch of the State Administration of Foreign Exchange said they would continue to explore more application possibilities in negotiations with foreign-related enterprises with the system.
The Chinese government continues to make progress in blockchain technology adoption. CryptoNewspeople reported on April 21 that the Industrial and Commercial Bank of China, or ICBC, released a white paper on blockchain technology applications in finance.