Currently, a blockchain-backed cross border platform pilot was executed in the Chinese city of Qingdao. The companies included have now made their first trades with associates in Southern Asia and North America.

As reported by the local newspaper, Sina, the companies are adoring the pilot program, and allege that the city’s banks will proceed to enhance the service.

Trades made with other countries through blockchain

About 37 Qingdao businesses have completed business with foreign enterprises by the blockchain platform, placed in the United States, Mexico, India, and several other countries.

Sina announced that the pilot platform directed to verify corporate credit information, authenticate export and finance loans, and direct electronic tax filing forms. In total, the transaction managed millions of dollars in less than 10 minutes.

This duration is important, recognizing that earlier, trade processes of this kind took about 12 hours. Companies also had to go to customs offices to execute the process.

Companies praised the pilot program.

Financial personnel of Borec Brake System Co., Ltd., a Qingdao-based vehicle brake manufacturer company included in the pilot program, commented:

“We didn’t expect that trade finance lending is so fast, and the operation is so convenient. Thanks to the cross-border financial blockchain service platform, our company’s urgent needs have been solved.”

City officials said Sina that they would proceed to strengthen the trade pilot program, in enhancement to attempting to extend the network to other banks. However, for now, they will be concentrated on expanding the number of accessible applications on the platform.

A representative of the Qingdao’s branch of the State Administration of Foreign Exchange stated they would proceed to examine more application potentialities in negotiations with foreign-related enterprises with the system. The Chinese government maintains to make progress in blockchain technology adoption.