The municipal Shanghai government has partnered with China’s central bank and five other financial institutions to create an alliance for blockchain-based trade finance.

Why it matters: This is the latest move for Chinese authorities as part of a renewed determination to fast-track blockchain development.

The blockchain alliance is the first blockchain application project in customs and the first service project for the China International Import Expo (CIIE), according to Ye Jian, official from the General Administration of Customs of Shanghai, as cited by the Global Times.

Details: Shanghai Customs, the Municipal Commission of Commerce, and representatives from six banks, including the People’s Bank of China (PBOC) and Bank of Communications, inked a Blockchain Alliance proposal for the city’s e-port area during the CIIE on Thursday, state-run Global Times reported.

PBOC’s Shanghai branch and the municipal commerce commission said in a joint statement on Thursday that they expect blockchain to solve information asymmetries in trade finance and verify authenticity for trades, according to Reuters.

Regulators also expect to tap into the technology to lower cost thresholds for trading institutions.

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