The People’s Bank of China has allocated 32.35 million yuan ($ 4.7 million) to its DLT trade finance platform as reported by the Global Times.
Global Times sources believe that three-year funding will help strengthen the security of the information exchange and facilitate the access of small and medium-sized businesses (SMEs) to a wider range of financial instruments.
According to Xinhua News Agency, the DLT platform has helped significantly improve the efficiency of approving SME loans – the time for processing trade financing has decreased from more than 10 days to about 20 minutes. Corporate finance costs decreased by almost 6%.
After the launch in September 2018, by mid-January, 44 banks and 1898 companies managed to become participants in the blockchain platform. According to Xinhua, the total volume of transactions over this period exceeded 90 billion yuan ($ 12.95 billion).
The development of the DLT platform for trade finance is jointly carried out by the digital currency research laboratory of the Central Bank of the country, the Chinese Academy of Sciences and a number of leading universities, including Tsinghua University.
Recall, earlier, representatives of the Chinese central bank expressed the view that the digital RMB will tighten competition between financial institutions.