- Chinese city Chongqing pilots blockchain platform to process millions in cross-border remittances and export trade finance.
The Chongqing Foreign Exchange Management Department of the State Administration of Foreign Exchange disclosed that of late, about 20 pilot banks in Chongqing, China took to a blockchain-fueled platform to process cross-border transactions of over USD 56 million. As reported by a local news outlet, Chongqing Daily, over the course of one year, the platform was used to process USD 460 million in export trade financing, as of 9 March 2020.
As per the report, the platform is being used to facilitate simplified cross-border remittances by decreasing the logistical investment and boosting the entire process through data sharing, a measure much needed amid the coronavirus outbreak.
Each of the banks have been testing 3 applications: Export Receivables Trade Finance Verification, Service Trade External Payment Tax Filing Information Verification and Enterprise Cross-Border Credit Information Authorization Verification.
Citing an example of the efficiency offered by the platform to process cross-border payments, the report stated:
“On February 24, a certain trading company in Chongqing urgently needed to pay a shipping fee of 140,000 US dollars to Hong Kong due to the import of masks. After understanding the customer’s needs, Bank of China Chongqing California Branch used the platform to verify the authenticity of the tax filing form. Using electronic scans, it remotely completed the payment of foreign exchange transactions on the same day, thereby helping the company to quickly transport anti-epidemic materials back to China. “
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