(Yicai Global) Jan. 14 – Shanghai should make use of blockchain technologies to promote cross-border financial transactions, the Shanghai Observer reported today, citing Raymund Chao, PricewaterhouseCoopers' chairman for Asia Pacific and China.

Chao made the remarks in an interview with state media during the third meeting of the 13th session of the Shanghai Municipal People's Political Consultative Conference, which kicked off today. He is a member of the conference.

As an international financial hub, Shanghai is home to most of the foreign-funded financial institutions' head offices in China, Chao said. So the city definitely has the right conditions and should actively make use of blockchain technologies to slash costs and transaction periods.

"Blockchain technologies are developing quite fast and have landed key applications in various industries and fields, especially the financial sector," Chao said, adding that he had presented a proposal to the Shanghai PCC to speed up the drafting of blockchain standards for the finance and other sectors.

Blockchain's main features are sharing, non-tampering, digital and traceable assets. Finding proper application scenarios, such as in food safety and cross-border payment, is not difficult once those characteristics are grasped, Chao said.

Building consensus is the second most important thing in promoting the technology, Chao added. Blockchain application scenarios generally involve many institutions, which usually interact with each other but are relatively independent, such as insurance companies, customs and logistics firms, he said.

"We need to build consensus on how to connect these institutions to solve key problems together," Chao said.

The PCC invites experts and professionals in various fields to discuss important national and local political, economic, cultural and social issues once a year. The term of each member is for five years.

Editor: Peter Thomas