China Construction Bank which is the second-biggest bank in the world by operating assets has officially launched the blockchain-based refactoring platform as we are reading more about it in the blockchain news today.
Targeting commercial factoring businesses, the China Construction Bank hopes to boost the operations and reduce the major risks in the refactoring business and to also provide shared data access by multiple participants according to the Chinese news outlet Sina Tech. As the reports noted, the factoring firms represent third parties that buy the businesses’ invoices at a discount hoping to help these businesses raise more funds.
The news comes right after the China Construction Bank released the second version of the blockchain-based trading platform back in October. The BCTrade 2.0 exchange reportedly gathered up to $50 billion in cumulative transaction volume and the blockchain trading financial platform of the bank even facilitated domestic letters of credit thus providing international factoring as well as refactoring. By applying the BCTTrade exchange, the bank is now one of the big four banks in the People’s Republic of China which enabled the digitization of trade and financial services between 54 domestic and foreign institutions along with a lot of state-run banks.
CCB’s latest endorsement in blockchain comes alongside the reports of the Bank of China after it issued up to $2.8 billion in blockchain-based special financial bonds for small and micro-enterprises. As reported previously, the funds are specifically used to issue loans to the Chinese small and micro-sized companies that will support further development in the economy.
In the meantime, the People’s Bank of China aims to launch a digital token that will challenge the United States Dollar. Also, we can now see that as one of the four largest commercial banks in the country, Bank of China issued $2.8 billion – 20 billion yuan – to the enterprises in blockchain-based bonds. The issuance has a two-year 3.5% coupon rate which is the annual interest of a bond, as a statement read.
Bank of China issued a lot of money for SMEs which shows its commitment to the economy. When it comes to blockchain, the country plans to grow its initiatives to 65.7% on an annual basis and predicts that it will reach its peak in 2023. By then, the forecasts for blockchain in China show that the numbers could exceed $2 billion.
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