China: blockchain will protect banking secrecy

Ensuring the confidentiality and authenticity of correspondence is a critical task, including for the financial sector. The China Banking Association has solved this issue in a simple and elegant way. Interbank correspondence will now be conducted through the blockchain

A banking correspondence platform was launched in Beijing in December 2020. Its creation was commented on by Liu Fushou, General Counsel of the Chinese CBRC.

In his interview, he emphasized that blockchain technology could help reduce the growing wave of financial fraud, audit errors and other risk factors. They pose serious operational challenges for commercial banks in China.

About blockchain platform

Technically, the new blockchain-based correspondence verification platform is an important aspect of innovation. Digital correspondence helps build an open and secure banking environment. This improves service and reduces major risks.

Thanks to the blockchain, confidential documentation will not fall into the wrong hands. Therefore, the platform seemed promising to the financial sector.

More than one hundred applications from commercial banks and audit companies for joining were submitted in December. Work in the system will be built in a chain - from the application for a document to its approval and issuance.

It should be noted that this is not the only government-supported initiative aimed at actively using distributed ledger technology in the banking and financial sectors. Earlier we wrote that China is actively preparing for the release of CBDC.