Another Chinese province, Hainan, joins the blockchain ecosystem with the declaration of a cross-border financial services platform. The news of the platform’s pilot was declared on Friday.

According to the local newspaper Hainan Daily, the central government approved the initiative, enabling banks to grant loans to companies that seem to export their products overseas.

The measure attempts to decrease the bureaucracy of customs procedures in enhancement to decreasing the number of loan applications by regular channels.

The pilot program will choose two banks to conduct business by the blockchain-powered platform. Local media reported that the first export account was traded victoriously through the system.

Cutting time and expenses in the process

Following guidance from the Hainan branch of the Foreign Exchange Bureau, the local office of the Bank of China relied on the blockchain platform to favorably transfer money from a company in Hainan.

Sina states that the platform has a number of notable advantages. One includes the application of tamper-proof blockchain data by authentication functions for customs declaration forms. This clarifies the process, enhances efficiency, and decreases the processing time significantly.

Once officials assess the results of the pilot program, the Hainan Provincial Branch of the Foreign Exchange Bureau will attempt to increase the utilization of blockchain in cross-border payments services.

Other Chinese provinces already joining to the blockchain adoption.

It was reported on April 22 that a blockchain-backed cross border platform achieved in the Chinese city of Qingdao was enabling companies to trade with associates in North America and southern Asia.

The Hunan province also currently approved the Wanbao blockchain zone in the city of Loudi, according to local news reports on March 4.