Chinese regulator State Administration of Foreign Exchange (SAFE) expanded its blockchain cross-border financing pilot program. Local information outlet GlobalTimes reported on Nov. 11 that the system now covers 19 provinces and cities, up from 9.
The growth is unsurprising provided that on the finish of October SAFE deputy head Lu Lei stated that there are plans to make use of blockchain and AI in cross border financing with explicit consideration dedicated to threat administration functions.
“No space for human mediation”
Per the report, unnamed specialists hope that the blockchain implementation will permit for extra environment friendly and safer cross-border monetary providers. The challenge, first launched in March, supplies financing providers for exports and information verification for worldwide corporations.
Blockchain analyst Cao Yin instructed the outlet:
“The traditional financial processes, which require a lot of human labor to carry out information verification and authorization, leave a lot of room for financial fraud. […] As the blockchain system promises a decentralized and encrypted track of each capital flow, it leaves potentially little to no space for human mediation.”
Transaction time lowered from 2 days to 15 minutes
Yin additionally defined that the platform cuts the processing time and permits for real-time supervision, which considerably improves financing circumstances for Chinese exporters. The transaction processing time has reportedly been reduce down from two days to 15 minutes.
The system employs the blockchain platform developed by the ZhongChao Blockchain Technology Research Institute based mostly in Hangzhou. As of late October, all taking part 20 industrial financial institution branches in this system have been granted entry to the system.
As Cointelegraph reported on the finish of October, SAFE’s chief accountant Sun Tianqi referred to as for international regulators to cooperate on countering unlawful cross-border transactions.
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