Local Shanghai government departments and several financial companies have established a blockchain alliance to boost the city’s international trade using blockchain technology. According to the Global Times report, Shanghai Municipal Commission of Commerce, Shanghai Customs, and representatives of 6 bank branches in the city signed an E-port blockchain alliance.
China is embracing blockchain technology
Earlier, the President of China Xi Jinping endorsed the blockchain technology. He asked the country to assume the role of leadership in this field. Several from the crypto industry speculated that it was the President’s speech that triggered the spike in the price of bitcoin. Port of Shanghai is among the busiest port in the world. The People’s Bank of China is all set to issue official digital currency of the country.
This blockchain alliance can ease international trade for the city as it can help improve the efficiency of customs clearance and reduce the cost. In September last year, Nasdaq listed technology firm Ideanomics formed a joint venture APMEN Trade Tech to streamline ports in the Asia Pacific by using blockchain and AI.
According to an official from the General Administration of Customs of Shanghai, blockchain alliance is another move under China’s vow to optimize its business environment. Shen Weihua, deputy director of the Shanghai Municipal Commission of Commerce, informed that technology has already been applied to several business areas that are involved in Shanghai’s international trade. These areas include digital insurance, digital supply chain, IoT, and intelligent manufacturing.