China Banking Association develops blockchain-based inter-bank platform

China Banking Association (CBA), a self-regulatory bank organization, is going to develop a blockchain-based platform to enhance efficiency across the banking sector, CoinTelegraph reported.

According to an official statement issued on December 29, the ‘China Trade Finance Inter-bank Trading Blockchain Platform’ aims to bring blockchain benefits to the trade finance ecosystem and financial services.

A number of banks have joined the initiative including Ping An Bank, HSBC Bank (China), China Merchants Bank, Bank of China, and others. Hang Seng Electronics Co., Ltd., Hengyin Financial Technology Co., Ltd., and other financial technology companies will provide important technologies and services for the platform.

“The establishment of this inter-bank platform can be described as extraordinary, opening up barriers between different banks and realizing the interflow of information,” HSBC China vice president and head of industrial and commercial finance Fang Xiao said (Cointelegraph quoted from China News).

“The use of blockchain technology to promote trade finance reform has become a global trend. The HSBC Group's overseas blockchain trade pilots show that the blockchain is used to improve the efficiency, safety and scale of trade.”

According to the release, ten participating banks have successfully completed two network tests. The platform’s working version is expected to be rolled out sometime this year.

“The China Banking Association plans to further expand the platform coverage, absorb the majority of small and medium-sized banks to join the platform, expand the platform business type, and actively cooperate with relevant agencies such as taxation and customs to give full play to the platform of industry organizations,” the release said (via online translation).