China has very bold and ambitious plans when it comes to blockchain technology. This week, the PBoC has unveiled its plan to invest just under $5 million in a blockchain-based trade finance platform.
Blockchain technology can transform the world as people know it today.
PBoC Wants to Push Blockchain Technology
Unlocking that full potential will require a lot of research and development.
Currently, the technology is primarily used in the cryptocurrency industry.
Finding use cases outside of that scope has proven to be rather challenging.
Chinese officials want to conduct ample experiments, and throw a lot of money at these ventures as well.
The PBoC is dedicating $4.7 million in “special funding” for its in-house blockchain trade finance solution.
This money will be utilized to fund the research and development for this project over the coming three years.
This trade finance platform is not a new venture, as several dozen banks are already experimenting with the technology today.
For now, the main focus of this platform lies with SME loan approvals.
Making that form of financing easier and faster to access is beneficial in a major financial region such as China.
It is another validation of how Chinese officials want to make the most of blockchain technology.
Only time will tell if these efforts were in vain.