Author: Black Pearl
On November 20th, Hang Seng Electronics Co., Ltd. official news, Hang Seng Electronics Blockchain Operations Director Ren Shan said that the China Banking Industry Association led the 11 head banks and four technology companies to participate in the "China Trade Finance Intermediary The trading blockchain platform has fully realized the domestic letter of credit and the Forfeiting business.
Mutual chain pulse observation, in addition to the China Banking Association, another central bank, the SAFE is also cooperating with many commercial banks to carry out Forfeiting and letter of credit business. For cross-border payments, or interbank business.
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Three regulators build cross-bank blockchain alliances
The “China Trade Finance Inter-bank Trading Blockchain Platform” was launched as early as December 29, 2018, and it was followed. In January 2019, China Merchants Bank Fuzhou Branch passed the "China Trade and Finance Inter-bank Trading Blockchain Platform" to open a domestic letter of credit for the Industrial and Commercial Bank of China Zhanjiang Branch to complete the letter of credit notice operation.
In July this year, Bai Ruiming, deputy secretary-general of the China Banking Association, said that 12 large commercial banks, such as industry, agriculture, China, construction and diplomatic relations, and some small and medium-sized banks have participated in the platform construction. The platform is scheduled to be officially launched in August and the news will be held in October. Conference. But this conference has not been held so far. In the news of Hang Seng Electronics on November 20, the number of participating commercial banks became 11 and there were four more technology companies.
Compared with the “China Trade and Finance Inter-bank Trading Blockchain Platform”, among the three regulatory agencies, the cross-border financial related business platform led by the central bank and the State Administration of Foreign Exchange has a larger layout.
On September 4, 2018, the People's Bank of China launched the “Central Bank Trade Finance Blockchain Platform”. The first phase was launched in Shenzhen. So far, 30 banks including Bank of China, China Construction Bank, China Merchants Bank, Bank of Communications, Ping An and Standard Chartered have access. Its business covers four major items: supply chain receivable multi-level financing, cross-border financing, international trade account supervision, and external payment tax filing form.
On March 22nd, the cross-border financial blockchain service platform (National Cross-border Business Blockchain Platform), which was established by the State Administration of Foreign Exchange, launched the first batch of pilot activities in the provincial capitals of Shanghai, Chongqing and Jiangsu, Zhejiang and Fujian provinces. The city unfolds. On July 6, the original provincial capital city pilots were expanded to the whole province, and Shaanxi, Beijing, Xiamen, and Ningbo provinces were added to pilot projects. At the same time, all branches of 14 banks in the above nine provinces and municipalities participated in the pilot.
On November 11th, the pilot of the platform will be further expanded to 19 provinces and cities nationwide. Now, its main application scenarios are export receivables financing and enterprise cross-border credit information authorization verification.
(Cartography: Interchain Pulse)
Commercial banks also have spontaneously formed blockchain platforms.
On October 25th, Everbright Bank successfully launched the chain as the core node of the “blockchain Forfeiting Trading Platform (BCFT)”. BCFT was initiated by CITIC Bank in September 2018. Bank of China, China CITIC Bank and Minsheng Bank were designed and developed and launched based on the Fabric 1.0 alliance chain.
Less than one year after the launch of BCFT, the cumulative transaction amount reached 20 billion yuan. It is reported that more than 30 banking institutions have joined or have the willingness to join. In September this year, CITIC Bank, Bank of China, Minsheng Bank, and Ping An Bank simultaneously upgraded and upgraded the blockchain Forfeiting Trading Platform (BCFT), and also launched the “Blockchain Domestic Letter of Credit Forfeiting Business Master Agreement”.
The alliance platform is easy to set up and maintains. It is difficult for some inter-bank alliances to continue to join the partners. China Merchants Bank launched the “Financial Inter-bank Digital Protocol Blockchain Platform” in December 2017. On the first day of the launch, the Bank of China Merchants Bank won 27 total of 6.369 billion interbank financial management agreements, and then there was almost no dynamic. As a member of the early alliance, Bank of China joined the “KYV Financial Alliance Chain” led by Aershan Financial Technology, but the alliance has no follow-up action. The platform of the official website of Aershan Financial Technology has been unable to query this platform.
(Cartography: Interchain Pulse)
Now, the four blockchain platforms led by the central bank, the State Administration of Foreign Exchange, the China Banking Association, and China CITIC Bank are advocating the formation of alliances among Chinese banks and making rational use of financial services.
A new currency payment system is being built and international financial services are becoming entry points
In fact, whether it is the blockchain cross-border financial/trade platform led by the central bank and the State Administration of Foreign Exchange, or the cooperation initiated by commercial banks, the main direction is international exchange business.
The main scenario of China's trade finance inter-bank trading blockchain platform is the domestic letter of credit and Forfeiting business. The blockchain Forfeiting Trading Platform (BCFT) is dedicated to the Forfeiting business. Forfaiting is an export credit, and the letter of credit business is a type of international settlement.
In the interactive business of banks and financial institutions around the world. What the Bank of China is doing is clearly different from other countries. On the one hand, there are few letters of credit and Forfeiting business in China's international banks. On the other hand, for the business of instantaneous cross-border payment, cross-border remittance and settlement, banks in various countries have been rolled out, and China has less action in this regard. At the same time, the alliance for inter-bank information business exchange has not been established in China.
The traditional international inter-bank business communication mainly relies on the “inter-bank intermediary” SWIFT to provide services. There have been two major pain points for a long time. First, the transaction speed is limited. Second, some data and information need to be entrusted to SWIFT.
With the maturity of the application of blockchain technology and the international situation, banks in many countries have been withdrawing from SWIFT and building their own platforms in recent years. "I want to use the blockchain to innovate my SWIFT but still can't resist the subversion of the blockchain . " In addition, some countries and banks that are not in the SWIFT system are also looking to use the blockchain platform to have more say in cross-border finance. Since the beginning of this year, there have been many projects.
Inter-chain pulse incomplete statistics, this year at least 7 blockchain cross-border payment projects, 6 blockchain cross-border payment / transfer projects. There are also two L/C related projects, as well as a cross-border settlement and a blockchain invoice project.
(Cartography: Interchain Pulse)
Some vigilant events have emerged.
The more a country's currency is used in international payments and settlements, the greater the international discourse power of the country's currency. In order to promote international status, countries are rushing to use the blockchain to pull up the moat. Inter-bank alliances are sometimes aimed at this goal, and lead agencies are often the biggest beneficiaries.
In the second half of 2017, JPMorgan Chase announced the launch of a peer-to-peer platform based on blockchain technology. Together with Australia's ANZ and Royal Bank of Canada, it established an inter-bank information network (IIN) on the Quorum blockchain platform. Cross-border payment issues in all major markets, including Latin America, Asia, Europe, the Middle East and Africa.
According to reports, the number of banks joining JP Morgan Chase IIN has exceeded 100.
However, in contrast to China's banking blockchain platform, although there is no direct cross-border payment, payment transfer and other services, but from the central bank, the foreign exchange administration, to various commercial banks, are deeply rooted in international finance, in the international trade business, The impact of national enterprises providing financial services in China may not be small. Blockchain technology is hitting the global financial landscape, and new markets are choosing new power.