The People’s Bank of China (PBoC), the country’s central bank, has raised $4.7 million in funding from the government for its blockchain-based platform.

The funding will be managed over three years and designated for research and development projects.

In September 2018, the PBoC unveiled the platform that aims to facilitate transfers and create an impenetrable ledger for sharing information between companies and government departments.

In January, it was reported that the platform had processed transactions worth $12.4 billion for 38 banks and nearly 1900 companies.

Xinhua, a Chinese media agency, has announced that the platform shortens the processing time for trade financing from about 10 days to only 20 minutes. In addition, it decreases the costs incurred from corporate financing by about 6%.

PBoC makes progress on digital yuan

The central bank earlier announced completing the “top-level” design of its new digital currency dubbed as Digital Currency Electronic Payment “DCEP”, in a smooth progress to adopt a digital currency.

In a recent paper, the central bank said, “The top-level design, standard formulation, functional research and development have been completed.”

Most importantly, the bank said work on the state-backed digital currency is progressing smoothly. “We will continue to steadily advance the development of legal digital currencies in 2020.”

However, PBoC has not unveiled the launch date of its new digital currency.

Blockchain necessary for economy

Bankers in China believe blockchain technology will boost the national financial system.

Hong Qi, chairman of Minsheng Bank, said the adoption of such state-of-the art technology is a top priority for China, and thus it should integrate into the banking and services sectors.

China widely uses Blockchain technology, thanks to President Xi Jinping’s support to the technology.

The number of companies using blockchain technologies reached 33,000 until the end of 2019, according to the data of China Blockchain Enterprise Development Research.

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