HSBC's Chen Peiying: Blockchain-based transactions can increase trade financing efficiency and promote the renminbi as a trade settlement currency

According to the Shanghai Securities News, HSBC completed the world's first cross-border RMB letter of credit transaction based on blockchain technology. Chen Peiying, general manager of HSBC China's global trade and financing business unit, said that China's trade with the world has only issued 1.2 million letters of credit last year, involving trade volume of nearly 750 billion US dollars. With the advancement of the internationalization of the RMB, the business demand for cross-border RMB letters of credit has also grown. This transaction fully demonstrates the huge potential of blockchain technology in improving trade finance efficiency and promoting the RMB as a trade settlement currency, which will create great value for China's import and export enterprises.