After Xi, China's Central Bank Gives Blockchain Tech a Pump

The People's Bank has said blockchain is a solution to trade finance asymmetries in the latest promotion of the tech in China.

AccessTimeIconNov 7, 2019 at 10:25 a.m. UTC
Updated Sep 13, 2021 at 11:40 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The Chinese central bank is promoting the use of blockchain in trade finance, soon after the nation's president made a call to adopt the tech across multiple industries.

In a joint statement with Shanghai’s commerce commission Thursday, the city's branch of the People’s Bank of China (PBoC) said blockchain can solve asymmetries in trade finance and provide authenticity for trades, according to Reuters. Blockchain also lowers cost thresholds for trading institutions, particularly in the export/import markets, the regulators said.

The joint statement comes two weeks after President Xi Jinping called on Communist Party leadership to “seize the opportunity” provided by blockchain technology, seeking for a top-down implementation approach along with wide-spread testing of blockchain’s applicability for the Chinese economy.

The PBoC is currently developing its own digital yuan, expected to be built at least in part with blockchain technology. Summer reports of a November launch date were recently shot down by a senior official, but the project is expected to go live soon after development was hastened by the announcement of the Facebook-led Libra project.

Chinese central bank image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.