- National Work Conference suggested that the growth of financial cross-platform blockchain services would be promoted in 2020.
- SAFE is a very critical department of China, also considered to be of as much importance as the People’s Bank Of China (PBoC).
- The establishment of cross-platform financial blockchain services is beneficial to the Chinese Government as it improves efficiency.
At the 2020 National Work Conference on Foreign Exchange Management, it suggested that the growth of financial cross-platform blockchain services would be promoted in 2020.
In April 2019, The State Administration of Foreign Exchange of China (SAFE) co-operated with a state-owned monopoly enterprise called ZhongChao Credit Card Industry Development Co., Ltd to successfully build a financial trade service platform based on blockchain.
SAFE is a very critical department of China, also considered to be of as much importance as the People’s Bank Of China (PBoC). The SAFE-built platform is not the first time the Chinese Government made an effort to create a blockchain-based financial trade service platform.
In September 2018, the People’s Bank of China launched the first financial blockchain platform named the Bay Area Trade Finance Blockchain Platform Project (BAFTB).
And in February 2019, as part of the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area, BAFTB was completed and achieved a new milestone with the complete support of the Chinese Government.
The establishment of cross-platform financial blockchain services is beneficial to the Chinese Government as it improves efficiency and also enables more natural regulation and monitoring within the system. During a trade, generally, financial institutions do not tend to disclose information to each other.
The disclosure of data has to be manually done by the government departments or the central Government. Having a blockchain platform that digitizes the whole procedure while maintaining strong transparency of information involved in trade, the usage of such blockchain services solves a lot of problems for the Chinese Government.
Also, such a blockchain-based platform would be extremely versatile in making it possible for companies to perform business operations using blockchain technology.
All procedures of financial trade such as applying for a loan, modifying applications, receiving permissions, and receiving of credit, etc. can all be done on the blockchain platform simultaneously.