Technology has always been disruptive and with time, we often find ourselves tredding new paths of glory. With such a probable mission in mind, 3 Chinese banks have trialed a blockchain-based settlement system, completing their first payment. The platform recorded a total of six transactions, for a total value of 30 million RMB. Ping’Tai is a joint effort between three leading banks, “embodying the principles of equality, mutual trust and openness.” In addition to the state-owned Bank of China and China CITIC Bank, the privately-owned China Minsheng Bank is also participating.
By using blockchain, Big Data and other technologies, the three-way partnership effectively solves the four major problems of traditional inter-bank asset transactions. Collectively by standardizing the way information is sent and stored, the platform prevents data from being distorted, and streamlines the transaction process:
The traditional approach loaded the operators with high volume of repetitive work, and has high security requirements for the operators. This platform is highly digitalized. Thanks to the blockchain structure, multi-node storage, traceable ledger, shareable data, and immutability… the paperwork of the operators is greatly reduced.
The transition to blockchain settlement by major state-owned banks marks China’s latest step to keep at the forefront of blockchain innovation, with its promises to revolutionize finance and business. Although the People’s Republic has been rather less welcoming of censorship-proof cryptocurrencies, that hasn’t stopped the Chinese government from researching and exploring DLT applications for banking and supply chains.