In September 2018, the
People’s Bank of China (PBOC) unveiled a blockchain trade finance platform. At that stage, it was still framed as a pilot and involved five banks. Today Chinese media, including
21st Century Business Herald report that so far the solution has processed Yuan 30 billion ($4.5 billion) in foreign exchange transactions.
It now incorporates 28 banks in Shenzhen, which includes 483 bank branches.
The comparatively slow adoption of technology by foreign banks appears to be inhibiting growth. The article states that “cross-border financing is provided by overseas banks” but that “due to the uneven development of domestic and foreign financial technology, the business volume is still small”. Hence it’s possible that currently the project is used more for regulatory compliance rather than finance.
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