The municipal Shanghai government recently joined forces with even six financial institutions with the main goal of creating an alliance that will foster the use of blockchain for global trade operations. As the news reported by Global Times on November 7 show, the China International Import Expo was the event where the news were announced.

At the even, we could see the Shanghai Municipal Commission of Commerce, the Shanghai Customs as well as representatives from six bank branches (including the People’s Bank of China and the Bank of Communications) who all together signed a Blockchain Alliance proposal for the city’s port area.

Right now, the topic is viral in the blockchain news and the Shanghai government is prepared to tackle the project. According to one professor at the College of Information Science and Electronic Engineering of Zhejilang University named Chen Huifang, blockchain has previously been implemented in several free trade zones across China.

“Blockchain technology increases the reliability of information, thus improving the efficiency of customs clearance, reducing costs and promoting trade facilitation,” the professor noted.

An official from the Customs of Shanghai named Ye Jian also emphasized the need of this blockchain alliance, stating that this is “the first blockchain application project in customs and the first service project for the CIIE.”

He also added that blockchain has been implemented in the cross-border yuan trade financing services for the Shanghai government and its single window system announced earlier this year. It will help to tackle data imbalance issues in the process.

As the Global Times report featured in the crypto news also shows, a pilot blockchain system was also on a trial by the Shanghai government and meant for cross-border financial services in the Nanning region this October.

The vice director of the China Construction Bank and its Shanghai branch named Qi Hong took to reporters, stating that the technology remains in its early experimental phase in the country. He outlined the following:

“We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn’t have a sound understanding of the technology when it comes to financing. But I think the government’s call for blockchain construction will help push the technology’s application in a more comprehensive way.”

The Shanghai government is expected to successfully manage this alliance and implement blockchain for its global trade solutions.

The post Shanghai Government Partners With Six Banks For A New Blockchain Project appeared first on DC Forecasts – Leading Digital Currencies.

Receive the latest Crypto Regulatory and Legal News via LinkedIn or Twitter:
LinkedIn

Source: https://www.dcforecasts.com/blockchain-news/shanghai-government-partners-with-six-banks-for-a-new-blockchain-project/