The People’s Bank of China (PBoC) has secured $4.7 million in funding from China’s central government for its blockchain trade finance platform. The funding will be administered over three years and has been designated for research and development projects.
The blockchain platform was initially revealed by the PBoC in Shenzhen during September 2018. The platform is intended to facilitate transfers and create an un-tamperable ledger for secure information sharing between businesses and government departments.
By mid-January, it was estimated that the platform had processed $12.4 billion worth of transactions for the 38 banks and nearly 1,900 firms that have signed up to use the platform.
Chinese media outlet Xinhua claims that the platform has shortened the time taken to process trade financing from roughly 10 days to just 20 minutes. The costs incurred through corporate financing executed using that platform has also reportedly decreased by approximately 6%.
The platform is administered by the PBoC’s Digital Currency Research Lab, the Chinese Academy of Sciences, leading Chinese universities and major local banks.