China’s Central Bank Promotes Blockchain Utility
China’s central bank and financial regulator, the People’s Bank of China (PBoC) has endorsed the revolutionary distributed ledger technology (DLT). The apex bank has made it clear that blockchain tech has real use cases in the financial sector, as it significantly reduces the risks involved in trade finance, reports Reuters on November 6, 2019.
DLT has Huge Potential
China has been in the news for all the good reasons of late and it appears the nation’s renewed enthusiasm in the blockchain space will continue to increase.
In the latest development, the PBoC may be making serious plans to integrate blockchain technology into its operations.
Specifically, the PBoC has stated categorically that the nascent blockchain technology has huge potential in the financial sector of the economy, as it completely fixes the challenge of information asymmetry in trade finance, while also making it easier for market participants to provide proof of trade authenticity.
What’s more, the 71-year-old financial institution has noted that the intricate properties of DLT could enable banks to reduce financing risks significantly, whilst also helping importers and exporters to reduce financing costs.
China Still Interested in Bitcoin?
The Chinese central bank’s latest statement echoes the same sentiments with that of President Xi Jinping, who has urged the nation to delve deeper into blockchain technology and become a leader in the industry.
Though the nation has tried to warn its citizens to refrain from speculating in bitcoin (BTC) and other blockchain-based digital assets, there’s still a possibility that China could unban crypto trading in the near future.
On November 6, 2019, reports emerged that the Chinese government will no longer place an embargo on bitcoin mining operations in the state, a move that could spur more crypto miners to flock to the region in a bid to take advantage of the cheap electricity in the state.
Last month, the PBoC announced that it was putting the finishing touches to its national cryptocurrency called the Digital Currency Electronic Payment System (DCEP), which could be integrated into apps like Huawei’s WeChat and others.