Despite implementing a ban on cryptocurrencies, China is actively delving into blockchain technology. The Chinese government has recently initiated an ambitious project called the “Ultra-Large Scale Blockchain Infrastructure Platform” for the Belt and Road Initiative.
Spearheaded by Conflux Network, this initiative seeks to develop a resilient public blockchain infrastructure to facilitate cross-border trade and bolster Chinese commercial ventures throughout Asia, Africa, and Europe.
Chinese Blockchain Fuels Belt Road
On Sunday, March 31st, the Shanghai Tree-Graph Blockchain Research Institute, affiliated with the Conflux Network, unveiled a significant collaboration with the Chinese government. The partnership aims to construct an expansive “Ultra-Large Scale Blockchain Infrastructure Platform” for the Belt and Road Initiative (BRI), a comprehensive network of trade routes spanning from China to Europe.
As outlined by Conflux, the initiative’s objective is to establish a scalable and streamlined public blockchain infrastructure, facilitating seamless cross-border cooperation. This infrastructure will serve as the cornerstone for executing diverse cooperative projects among the nations involved in the BRI.
This positions blockchain technology at the forefront of one of China’s paramount strategic objectives: the creation of an extensive trade network spanning Asia, Africa, and Europe. The Belt and Road Initiative (BRI) is dedicated to forging networks of trade routes, infrastructure developments, and economic corridors reminiscent of the historic Silk Road.
The main focus of the project is to create a public blockchain infrastructure platform. This platform will be able to support the implementation of cross-border cooperation projects along the Belt and Road Initiative. It will provide the base for developing applications that… https://t.co/MkWgRY2G8A
— Conflux Network Official (@Conflux_Network) April 1, 2024
Blockchain Being the Game-Changer
Technology has the potential to fundamentally transform supply chain management by introducing a plethora of benefits. One such advantage is the provision of real-time, immutable records pertaining to product origins, manufacturing dates, and transportation routes.
This heightened transparency fosters trust among trade partners while substantially diminishing the risk of fraudulent activities. Additionally, it ensures compliance with intricate international trade regulations, thereby enhancing the integrity of the entire supply chain process.
Moreover, the utilization of blockchain technology can revolutionize cross-border financial transactions by simplifying and fortifying the process. By reducing intermediaries, transaction costs are minimized, and settlement times are expedited, consequently optimizing the efficiency of financial operations.
The integration of smart contracts further augments this efficiency by automating payments and contractual obligations, thereby streamlining trade financing processes and mitigating potential barriers.
Just In: The China govenment has launched a blockchain project titled “Ultra-Large Scale Blockchain Infrastructure Platform for the Belt and Road Initiative”. This project is led by Conflux Network. The main focus of the project is to create a public blockchain infrastructure…
— Wu Blockchain (@WuBlockchain) April 1, 2024
The conventional method of sharing official documents in cross-border trade, such as customs documents, bills of lading, and certificates of origin, is often plagued by inefficiencies and susceptibility to fraud. Blockchain offers an innovative solution by enabling the secure and instantaneous sharing of digital documents.
These documents can be authenticated and verified by all involved parties in real time, thus enhancing the speed, security, and reliability of document exchange in international trade.
CEO Urges Blockchain for Faster Payments
In a recent statement by RTGS Global CEO Jarrad Hubble, it has been highlighted that recipients in Central Asian countries frequently endure extended waiting periods of two weeks or more for payments to materialize, significantly impeding trade flow within the region.
Acknowledging the potential of blockchain technology in addressing such challenges, Hubble emphasized the necessity for integration with central bank systems to unlock its full capabilities.
Hubble further noted that blockchain rails constitute just one facet of a burgeoning multi-layered payment infrastructure. He emphasized a shift away from traditional fiat-to-fiat transactions towards a modern payment paradigm centered around “value-to-value” exchanges, underscoring the evolving landscape of global payment networks.
China integrates blockchain into the BRI to lead in the digital economy despite cautious cryptocurrency regulations. The Ultra-Large Scale Blockchain Infrastructure Platform marks a significant milestone, reflecting China’s commitment to leveraging technology for strategic advantage in global trade and economic cooperation.