China Plans To Feed Its State-Backed Blockchain With An Additional $4.7mn Investment
So far March 2020 found most traders speculating about whether the price of Bitcoin is heading north or south, or about how and if the ongoing epidemic might be influencing the broader cryptocurrency market. Some state-backed agencies are not keen on price discrimination and they focus solely on blockchain technology’s strengthening across industries, and it should come as no surprise China paves the way.
According to the Chinese media outlet Global Times CN, the government is pushing through additional funding towards a state-supervised blockchain-powered fintech platform developed by the People’s Bank of China, the central bank also behind the long-awaited DC/EP digital currency.
More specifically, PBoC is about to receive ~$4.7mn worth of yuan (32.35mn RMB) in government funding over the course of the next three years in order to accelerate research and development processes focused on the deployment of PBoC’s latest fintech channel, better known as the Bay Area Trade Finance Blockchain Platform.
From what I understand, this new blockchain channel is being tailored to storing logistical and transaction data regarding China’s current digital economic system, providing regulators with an extra pair of lens when it comes to financial overseeing. It is also said that the new ledger is a baselayer network for small and medium-sized enterprises (SMEs) who could access cutting-edge fintech tools through it.
PBoC has revealed in the past that they have been working on what appears to be Special Financial Bonds for SME Loans, once again, run on PBoC’s core blockchain, meaning that the new addition not only enhances blockchain usability status across world governments but also it aims in creating a supporting baseline for domestic SMEs.
Furthermore, the new fintech platform is supervised by PBoC’s Digital Currency Research Lab, the team also behind China’s CBDC, and it will be available to Shenzhen-based businesses soon. Details suggest that the platform was in closed beta between several major domestic banking institutions including PBoC, Ping An, and Standard Chartered as early as September 2018 and it is finally ready to be deployed.
Shenzhen is one of China’s modest smart-cities and is often referred to as the Silicon Valley of Asia, although it is more of a thing of its own nowadays, subject of envy even for SV giants. Just analogize the fact the city is home to global tech giants such as AliBaba, Huawei, Tencent, and WeChat, among others.
One could say that the smart-capital of the world, Shenzhen is a rival to Queensland colony Hong-Kong, which used to be the financial center in Asia for the past decades, and the city’s municipality even plans on its own local cryptocurrency despites PBoC’s pan-Asian and global CBDC.
It seems that although everyone is worried whether the Covid-19 pandemic (as confirmed by WHO yesterday) is affecting the DLT market or not, China is not only focused on its initial goal but investing in an economy with less physical interactions is one of the country’s key priorities at this point.