Kiev: China’s Central Bank launched its own blockchain platform for financial procedures in a test mode.
The first stage of testing took place in Shenzhen in the south of the country. After the final check, regulators will introduce the Bay Area Trade platform in the banks' operation, and representatives of small and medium-sized businesses will be able to use it as well. The developers expect that the blockchain solution will improve the efficiency of bank-to-bank operations and expand the tools of private entrepreneurs. For instance, businessmen will be able to quickly transfer data using a decentralized network and receive securities backed by assets.
The name of the platform resonates with the name of the Chinese economic development zone along the Pearl River where large cities and administrative areas of Hong Kong and Macao are located. Recently, the government of Hong Kong has announced its plans to attract blockchain specialists to work in the district.
Apart from the country's main bank, other influential financial institutions such as Bank of Communications, China Merchants Bank, and Standard Chartered, the British transnational bank, participated in the development of the project.
Local regulators hope that the transparency of financial transactions on blockchain and the data publicity, guaranteed by the technology, will allow monitoring risks closely and fighting fraud.