The People’s Bank of China (PBoC) has given out blockchain-issued financial bonds worth $2.8 billion to small business loans in China.
According to reports by Xinhua and Naeil, the central bank states that it issued out bonds using its own autonomously developed blockchain issuance system on 3rd December. In addition, the PBoC stated that its platform was the nation’s premier blockchain-based bookkeeping system.
Xinhua states that the bondsare a two-year-fixed rate offering, and has a final coupon rate of 3.25%.
For the past week, the PBoC has been intensifying its drive in blockchain and fintech as well. As reportedby the 21stCentury Business Herald media outlet, it has been working with government institutions and regulators to form guidelines for bodies responsible for supervising fintech-related pilot projects.
They further reported that, the PBoC is on the verge of succeeding in its journey to issue digital letters of credit. Nonetheless, Chinese industry associates are still contemplating whether the project will utilize blockchain or not.
Previously attempts made by PBoC and private-sector to issue digital letters of credit have made use of blockchain technology. However, one expert stated in a newspaper that the bank’s latest drive will rather use other IT solutions.
Another Chinese expert has also made outstanding claims regarding the speed of the network which will be used to operate the county’s incoming digital yuan.
Yang Wang is a senior research fellow with the Fintech Institute of Renmin University of China. Per reportfrom the Global Times, Wang claims the DC/EP digital currency will record a peak-transaction-per second of about 220,000. He claimed that, in terms of technology, China’s digital currency performs better in both security level and speed. Also, this technology will outperform its competitors in user experience, added Wang.