Another Chinese province, Hainan, joins the blockchain ecosystem with the announcement of a cross-border financial services platform. News of the platform’s pilot was announced on May 8.
According to the local newspaper, 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, in addition to reducing the number of loan applications through regular channels.
The pilot program will select two banks to carry out business through the blockchain-powered platform. Local media reported that the first export account was traded successfully through the system.
Cutting time and expenses in the process
Under 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.
Sina reports that the platform 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.
Once officials evaluate the results of the pilot program, the Hainan Provincial Branch of the Foreign Exchange Bureau will seek to strengthen the use of blockchain in cross-border payments services.
Other Chinese provinces already joining to the blockchain adoption
CryptoNewspeople reported on April 22 that a blockchain-backed cross border platform implemented in the Chinese city of Qindao was allowing companies to trade with partners in North America and Southern Asia.
The Hunan province also recently approved the Wanbao blockchain zone in the city of Loudi, according to local news reports on March 4.