Another Chinese province Hainan joins the blockchain ecosystem with the announcement of a cross-border financial services platform. News about the platform pilot was announced on Friday.
According to the local newspaper Hainan Daily, The central government approved the initiative and allowed banks to lend to companies wishing to export their products abroad.
The measure aims to reduce the bureaucracy of customs procedures and to reduce the number of loan applications through regular channels.
The pilot program will select two banks that will do business on the blockchain-based platform. Local media reported that the first export account was successfully traded through the system.
Reduction of time and costs in the process
Led by the Hainan branch of the Foreign Exchange Office, the local Bank of China trusted the blockchain platform to successfully send money from a company in Hainan.
Sina reports that the platform has a number of significant advantages. One of them is the use of tamper-proof blockchain data through authentication functions for customs declaration forms. This simplifies the process, improves efficiency and significantly reduces processing time.
Once officials have assessed the results of the pilot program, the Hainan Province Foreign Exchange Office will try to increase the use of blockchain in cross-border payment services.
Other Chinese provinces are already adopting blockchain adoption
Cointelegraph reported on April 22 that a cross-border blockchain-enabled platform implemented in the Chinese city of Qingdao enabled businesses to trade with partners in North America and South Asia.
Hunan Province recently also approved the Wanbao blockchain zone in the city of Loudi, according to local news on March 4th.