Chinese Banks Launch First Blockchain-Enabled Credit Applications

China-based CITIC Bank will launch a new system to settle credit that uses a Blockchain technology-based electronic transmission system.

the transmission network promises more efficient credit operations by transmitting messages within seconds. This is the first ever letter of credit system in the banking industry built with Blockchain technology.

BCLC optimizes the traditional banking system and improves services including opening letters of credit, pay orders and acceptance messages. It also enables buyers to connect with banks on the network to allow full transparency in banking transactions such as issuing, notifying, accepting and paying.

On the first day, a 100 mln letter of credit transaction was conducted on the system, marking the successful attempt of domestic banks to break the constraints of a traditional banking system.

After the success, CITIC bank said that it will work harder to improve the services offered in the Blockchain-based system and expand the scope of applications by conducting more research and tests to make the technology more efficient.