The People’s Bank of China blockchain trade platform has received 32.35 million yuan ($4.7 million) to incorporate research in the next three years.

 The $4.7 million received by China’s Central Bank, special funding is for significant research and development projects for its blockchain platform, according to Globaltimes.

The blockchain platform was revealed by the PBoC in September 2018, at Shenzhen, South China’s Guangdong Province.

The China Central Bank platform is designed to promote transfers and build a tamper-proof ledger for reliable data sharing between government departments and businesses.

A considerable number of investors

The number of banks and companies associated with the blockchain platform has proceeded to develop following its launch. Prominently, by mid-January, the platform combined 44 banks and 1,898 companies and treated more than 90 billion yuan in transactions.

Industry insiders noted the funding would assist in driving the growth of the China blockchain trade finance platform, which is distinctly the most financed and highest-level blockchain project at the national level.

The central bank is to make sharing data safe and further promote small and medium-sized enterprises (SMEs). This is to obtain a broader range of financing tools during the COVID-19 epidemic.

China blockchain platform could generate new opportunities

According to McKinsey, China’s Central Bank platform could “generate vital new opportunities” for SMEs, banks, and service providers. 

Chinese premier Xi Jinping stated the country had to “grab the opportunity” when it came to blockchain technology. Including developing government investment and improvement in core technology areas.

Wu Hao, an independent analyst, stated every trade scenario could crash “isolated islands of data.” By applying blockchain technology, however, if a centralized industrial standard and mature technology are lacking, information blocks will still appear in businesses.

Given such circumstances, stimulating the improvement of the trade finance platform will play an indispensable role in increasing the efficiency of interbank transactions as data shared across participants through an assigned network.

The China blockchain platform has prominently assisted in improving the effectiveness of SME loan approvals. Xinhua stated, in principle, the time needed to process trade financing has been shortened.