The blockchain trade finance solution of Chinese central bank has recently processed over 30 billion yen ($4.36 billion) in foreign exchange transactions.

According to a local finance news outlet SINA, the People’s Bank of China (PBoC) operates its platform across 483 branches of 28 banks in Shenzhen. A representative in PBoC stated that blockchain tech helps avoiding the slow paper collaboration amongst different departments that is typical of trade finance in the traditional banking environment. 

Last week, a strategic cooperation agreement has been signed between the Shenzhen Municipal Central Bank Branch of the PBoC and the Shenzhen Taxation Bureau of the State Administration of Taxation. 

The cooperation aims at optimizing automatic tax filing in the central bank’s trade finance blockchain platform.

In September 2018, the PBoC has officially launched the testing phase of its blockchain trade finance platform, with the purpose of facilitating trade and financing activities such as accounts receivable and trade financing.

Earlier, China’s foreign exchange reserve regulator, the State Administration of Foreign Exchange, has reportedly teamed up with the Hangzhou Blockchain Technology Research Institute to promote greater efficiency in global trade finance. They developed a blockchain system that uses multi-signature technology to keep trading content private. Only the firms involved in the transactions and regulators relating to customs, taxation, industry, and commerce can see the details.