Operators of a Chinese blockchain-powered cross-border trade pilot platform are set to expand the platform’s scope – with multi-million dollar trade deals now being conducted in a key testbed area.
Per Haiwainet, the central government is testing the efficacy of the network in the Guangdong-Hong Kong-Macao Greater Bay Area, also known as the Pearl River Delta. Official figures show that the platform has handled USD 4.4bn worth of transactions so far this year.
The platform reportedly allows companies to apply for bank financing faster and more effectively than using conventional financing systems. It also allows customs officials to work on cross-border trade deals at a reportedly much faster rate, boosting the speed of international exports.
However, the government has now given its blessing to the operators’ plans to expand the scope of the pilot, allowing companies to make applications to creditors and prove the worth of their business proposals on the same platform – and make authenticity verification checks.
One company in the Nansha District section of the testbed in Guangzhou recently reported that it had used blockchain-powered authenticity verification solutions to conduct a cross-border trade for a company based in the district. The company used the platform to conduct an international deal in a foreign currency and was worth USD 5.52m.
The same media outlet added that “almost 400” companies in nine cities in the Guangdong-Hong Kong-Macao Greater Bay Area have made use of the platform for payments – and said that the initiative has been “broadly welcomed” by market players in the testbed area.
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