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Blockchain to support business financing in coronavirus-hit China

Blockchain to support business financing in coronavirus-hit China
Blockchain to support business financing in coronavirus-hit China
  • Blockchain will help regulators scrutinize transactions and respond quickly to risks or frauds
  • Nearly 170 corporate banks, autonomous regions and 22 provinces have joined the platform
About 87 businesses based in China have secured over $200 million of loans via cross-border and pilot blockchain finance platform since the Lunar New Year holiday. The spring festival holiday had been extended by three days to be able to curb the spread of a virus caused by pneumonia. WeBank’s chief information officer, Henry Ma commented that the impact of the virus was such that the negative points like verification inefficiency, difficulty in timely supervision, lack of trust in business and no information sharing had only been amplified. Apparently, the virus had killed over 1,500 people and a major part of China had extended the shutdown by a week while several parts of the country are still incapable of operating normally. Ma further commented that the cross-border and financial blockchain services play a bigger role than anticipated as well as help all the small-sized and medium enterprises enhance their convenience and efficiency of securing export trade financing and several other financial credit support. The government of China has made a number of announcements in order to help support the smaller businesses that essentially contribute to over half of employment and national economic growth. This shall be a major step up from the efforts of the national government to enhance access of the privately-run businesses to financing a system that is primarily state-dominated and has no preference for state-run companies and established credit score records. China Banking and Insurance Regulatory Commission’s deputy head, Liang Tao commented that the financial institutions including banks have supplied over $76.9 billion in credit to overcome the virus. A system based on blockchain lets users make a permanent record of all the important documents that can be easily accessible. This lets the lenders assess the amount of money that is safe for lending, strengthening their trust. The Chinese platform pilot will require a day to apply and receive loans on it.   Source Credit- https://www.cnbc.com/2020/02/15/coronavirus-china-taps-blockchain-tech-to-help-firns-hit-by-virus.html

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Bhushan Tambe

A qualified computer graduate, Bhushan Tambe always nurtured a passion for words. Post his education, he decided to transform his penchant of penning down poetry and stories into a full-time career. Presently, Bhushan writes numerous articles for cuereport.com and a few other websites, on subjects spanning business, finance, and the like.