The Shanghai Municipal Commission of Commerce and Shanghai Customs have teamed up with the six banks, including the People’s Bank of China and the Bank of Communications, to establish a blockchain consortium. 

The technology will replace the customs department’s paper-based system, saving billions of dollars for the Chinese government.

Digitizing Customs Operations with Blockchain

China’s customs department is among the first government agencies to implement blockchain technology. The blockchain alliance is part of China’s plan to develop various sectors in the country with advanced technologies.

Ye Jian of the General Administration of Customs of Shanghai said this is the first time that blockchain will be utilized to streamline customs in China, as well as the first project initiated for the China International Import Expo.

With blockchain, the government can save billions of dollars by eliminating its error-prone paper-based system.

Financial Institutions Keen to Apply Blockchain

Aside from customs, financial institutions in China are also actively incorporating blockchain into their operations. However, blockchain adoption in China is still in its infancy, and most people still do not understand the technology.

Qi Hong, vice director of China Construction Bank’s Shanghai branch, said, “We now use blockchain in sporadic financial products instead of the whole finance industry chain, and the public doesn’t have a sound understanding of the technology when it comes to financing. But I think the government’s call for blockchain construction will help push the technology’s application in a more comprehensive way.”

Source: thenews.asia

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