The Export-Import Bank of China (China Exim Bank) has announced its cross-border payment service powered by blockchain technology. This attempt is the first mile stone and important step for implementing the real-world use case for blockchain based technology.
In October 2019, Chinese president Xi Jingping has set an ambitious goal for the nation to become world’s leader in blockchain technology. By promoting and encouraging various business sectors to try and implement the technology, China determines to be the first to unveil constructive use cases for blockchain. Payment system is one sector that many expected blockchain to be disrupting for it requires core properties of fast, transparent, and open for public verification.
China Exim Bank also embraced this technology and initially implementing it to its branch in Xiamen which will be piloting the project. The bank’s main objective is to combat time consuming and complicated procedures usually faced in cross-border payment and multi-currency exchange. Blockchain technology will vastly reduce the amount of paper works and parties require for an authorization of any activities concerning international money transfer. With such improvements, this will ultimately lead to the overall faster transaction time and lower operation costs for its user.
The Exim Bank is one of the first three Chinese banks granted permission to pilot the blockchain project. This improvement not only allowing them to have a competitive edge over others and facilitate the export and import businesses in China, but also send a clear message to other nations that China is determined to be the leader in this fascinating new technology as well.