Chinese Bank Blockchain Consortiums Join the Race of International Financial Markets
Led by the China Banking Association, “China interbank transaction blockchain platform” has put the domestic L / C and forfaiting business on blockchain.
In addition to China Banking Association, regulators like China’s central bank and Foreign Exchange Administration are also working with numerous commercial banks to carry out forfaiting and L / C business to promote cross-border payment or interbank business.
“China interbank transaction blockchain platform” was launched as early as December 29, 2018. Up to now, 11 top banks and 4 technology companies have joined. The blockchain platforms launched by China’s central bank and Foreign Exchange Administration enjoy the largest scale.
On September 4, 2018, China’s central bank launched its interbank transaction blockchain platform in Shenzhen. So far, 30 banks, including Bank of China, China Construction Bank, China Merchants Bank, Bank of communications, Ping’an and Standard Chartered have joined, according to 8btc’s previous report. The business covers multi-level financing of supply chain accounts receivable, cross-border financing, supervision of international trade accounts, and foreign payment tax filing form.
On March 22, the cross-border financial blockchain platform launched by Foreign Exchange Administration had its first pilot activities in Shanghai, Chongqing, Jiangsu, Zhejiang and Fujian provincial capitals. On July 6, the service expanded to all branches of 14 banks from nine provinces. Now, it focuses on export receivables financing and enterprise cross-border credit information authorization verification.
Blockchain platforms are also established spontaneously among Chinese commercial banks. On October 25, Everbright Bank, as the core node of “Blockchain Forfaiting Trading Platform (BCFT)”, was successfully put on chain. Based on the fabric 1.0 alliance chain, BCFT was proposed by CITIC Bank in September 2018, which was jointly launched by Bank of China, CITIC Bank and Minsheng Bank.
It is easy to create but difficult to maintain, and some interbank blockchain consortiums launched by commercial banks faded as they lack partners to continuously join. The interbank blockchain consortiums launched by three regulators thrive and provide vigorous financial business service.
The main attack of interbank blockchain consortium in China is global business. The main business of interbank blockchain consortiums is forfaiting business, which is a kind of international settlement.
The traditional global interbank business mainly relies on “inter-bank intermediary” SWIF, which has a limitation on transaction speed, and private data is leaked.
As global situation changes, banks in many countries have withdrawn from SWIF to build their own blockchain platforms in recent years. Banks that are not in SWIF system also hope to a bigger voice in cross-border finance with the help of blockchain platform.