The main financial institution of China is in charge of the blockchain project and its development.
As part of a technological growth project, the People’s Bank of China (PBC) recently approved an increase in its investment in the technological sector. The amount of USD 4.7 million is focused on driving research and development on blockchain technology as well as its uses.
According to data that the institution issued, the main interest of the Chinese government is to develop a blockchain platform capable of facilitating financial trade, as well as other solutions that may arise from research.
The PBC will be the institution in charge of conducting the project, so they are waiting to receive 32.2 million yuan (equivalent to 4.7 million dollars) from the national government since the government authorized “special financing” for 3 years. During that time, the PBC must present periodic reports related to its progress and discoveries.
In this sense, local media assured that the money which is allocated for the institution will be used mainly to research, as well as to the creation of commercial tools that accelerate the financial movement of the country and the entire region.
The PCB Blockchain Platform
Until now, few details of the platform that the People’s Bank of China is trying to develop are known, but the institution hopes that the project will be a reality in a short time.
Blockchain Bay Area Trade Finance will be the name of the blockchain platform that will be used for financial trade and be enabled for PBC movements. The tool will help safeguard data, orders, and essential information that can allow the best development of business transactions and operations. Besides, the system will be able to share the necessary data so that the country’s regulatory entities can improve commercial oversight and control the operations more efficiently.
Ultimately, the platform will help small and medium-sized entrepreneurs obtain more refined technology to conduct their financial movements. This will facilitate the growth of the commercial sectors that do not have the support of the technology appropriate to the new times.
The Digital Currency Research Lab of the People’s Bank of China is the department that will be in charge of the development of the platform. As the first objective of the tool, once it is ready for operation, it will be available for financial trade in Shenzhen, a city of wide recognition and vigorous growth of technological developments.
Renowned financial institutions and companies such as Standard Chartered and the global corporate Ping An tested the platform at the end of 2018. This took place after said companies accepted the invitation of developers of the initiative.
According to reports from Chinese news agencies, they also tested the platform last January when a total of 38 banks used the blockchain to manage commercial movements that exceed 90 million yuan (approximately USD 13 million). Sectors linked to the project hope that the financing of the government will help to improve the tool they need.
By María Rodríguez