Local companies have transferred $580 million across international borders utilizing blockchain-based platform Yunnan.
According to a Spring City Evening News report, Yunnan cross-border financial blockchain platform had field 638 payment transactions for 208 companies.
In December 2020, the company promoted “Service Trade Payment Facilitation” across the province. The main scenario of this application is the easy way of transferring money to foreign companies. It helps reduce the time needed for international money transfers to 15 minutes from as long as two days.
In June 2020, the Yunnan Branch of State Administration of Foreign Exchange got approval to carry out pilot work of two application scenarios of “export receivables financing” and “enterprise cross-border credit information authorization verification.”
By June 2021, a total of 15 banks in the province joined in pilot projects of two financing scenarios. Various banks of China have accumulated RMB financing amounts of 4.532M yuan. The foreign currency financing amount is USD 754,000, with SME financing entities accounting for more than 70%.
Also Read: E-CNY to Promote the Internationalization of the Renminbi
In addition to being efficient for companies, the platform helps local authorities monitor the transaction and implement regulations. The “end-to-end” information verification mechanism has increased the success rate of corporate financing and efficiently reduced risk of bank financing.
