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Can you also do cross-border business on the blockchain? This digital trade of HANGGANG group is not simple

Time : 07/07/2021 Author : ab16lh Click : + -
        At present, many people's understanding of blockchain only stays on bitcoin. Recently, HANGGANG group publicly announced that HANGGANG group and vale of Switzerland used blockchain technology to complete RMB cross-border settlement for the first time, which attracted considerable attention. What is the novelty of RMB cross-border settlement using blockchain technology? What benefits can blockchain bring to international trade? Tianmu news interviewed relevant experts from Fuchun Co., Ltd. under HANGGANG group. On December 23, 2020, Fuchun Co., Ltd., a subsidiary of HANGGANG group, carried out the first paperless RMB settlement business under bulk commodity trade for Ningbo iron and Steel Co., Ltd. and vale through cooperation with contour transnational blockchain trade platform.
        What is the origin of this trade when trading on the blockchain? The project leader of Fuchun company told the reporter that the bulk commodity trade settled in Paperless RMB was the purchase of 40609 tons of Guaiba high silicon sinter from vale, the world's largest iron ore supplier, with a total amount of about 27.5 million yuan. In fact, since the second half of 2020, Fuchun has had the idea of trying blockchain technology in cross-border trade. Since I was unfamiliar with blockchain technology at that time, from the perspective of risk control, the project team spent a lot of time understanding the whole process and its principles. The amount involved in bulk cargo transactions is often large.
        According to the person in charge, the settlement between Fuchun company and mining enterprises has always been settled in US dollars by means of inter-bank letters of credit. However, for the goods imported into China, the buyer ultimately needs to pay in RMB, so the idea of cross-border settlement in RMB has always existed, but no opportunity has been found. It is not easy to get out of the framework of the US dollar and "regain" the initiative of the RMB. Fuchun first reached a consensus with mining enterprises on RMB cross-border settlement. The result of the negotiation was to use Kangtuo transnational blockchain trade platform as a service provider for RMB cross-border settlement. The transaction was completed by contacting the supplier, the supplier's issuing bank, the purchaser and the purchaser's issuing bank to operate on the platform. After many simulation tests, the transaction was completed.
        RMB overseas payment is an important means for China to improve the international settlement status of RMB. According to relevant reports, the weak dollar monetary environment will accelerate the internationalization of RMB. It is expected that by 2030, RMB will jump to the third largest payment currency in the world with a proportion of 7.94%. What is the difference between international trade supported by blockchain? This should start from the past trade settlement. In the traditional cross-border trade settlement, a cumbersome supply chain is often involved, especially the bulk commodity trade, which involves multiple regions and institutions, and there are many derivative branches in the chain. The transaction data is difficult to track and easy to be tampered with and interfered with.
        "The characteristics of blockchain technology are non forgeable, open and transparent, and full tracking. These characteristics just solve the pain points of the trade supply chain." The person in charge said that the most obvious advantage of cross-border settlement using blockchain technology is to break the restrictions of region, time and space. The blockchain logically integrates the trade supply chain and reasonably and orderly covers the parts of derivative branches. Nowadays, the transformation of trade services to digital has become the general trend. After experiencing the impact of the COVID-19 epidemic in 2020, all countries in the world have experienced trade stagnation to varying degrees. Paper bills of lading and letters of credit cannot be exchanged in time. The digital transaction mode simplifies the transaction process, shortens the processing time, and effectively avoids the risks of delayed delivery of documents and ship demurrage.
        To realize digital transformation, blockchain is one of the core technologies. The person in charge introduced that the blockchain is very inclusive and connected. It can avoid the centralization risk in the trade process according to the actual trade demand. It is much more anti-interference, and greatly improves the security of data, and solves the problems of data credibility, circulation and pricing. In the foreseeable future, blockchain technology will digitize the entire trade ecology. "This will be beneficial to suppliers, buyers and intermediaries in each link. The intermediate cost of trade will be greatly reduced. Meanwhile, the efficiency of capital flow will be higher. On the whole, the cost of cross-border trade will be reduced.
        ”Said the person in charge.
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