The Chinese regulator State Administration of Foreign Exchange (SAFE) runs a cross-border blockchain financing system and has helped firms with more than $8.2 billion.
The SAFE platform has helped small and medium-sized (SMEs) corporations and enterprises with this amount of money in only 8 months after being opened, reports the Economic Information Daily. Ever since it has been launched in March 2019, it has expanded its pilot financing program from 7 provinces to 17, having more than 160 banks joining its program.
One-Third of Chinese Lenders Providing Forex Services
Since November 29th, almost 1,600 companies, most of them SMEs, have become part of the SAFE program and started sharing their financial bookkeeps with over 160 banks. One-third of the lenders in China are providing Forex service. SAFE’s deputy director Zhang Xin said the platform will be advanced to make foreign exchange receipts and cross-border trade settlements easier. This is what the blockchain analyst Cao Yin declared about the initiative:
“The traditional financial processes, which require a lot of human labor to carry out information verification and authorization, leave a lot of room for financial fraud, but as the blockchain system promises a decentralized and encrypted track of each capital flow, it leaves potentially little to no space for human mediation.”
Aside from having a reliable trust mechanism, the SAFE platform offers real-time supervision and reduced processing time for any transaction. Zhang said transactions are now taking in place in 15 minutes, as opposed to the 1 or 2 days like they did before.
SAFE Platform to Be One of the Most Influential Chinese Blockchain Projects
The cross-border blockchain platform run by SAFE is at the moment the only state organ to file a Cyberspace Administration of China blockchain record. It’s set to become one of the most influential blockchain projects in the country, together with the central bank’s Greater Bay Area blockchain trade and finance platform.
After President Xi Jinping has endorsed the blockchain, more government authorities and enterprises in China have started hurrying to implement the new technology. Earlier in November, China has launched a blockchain identification system for cities.