From Belt to Blockchain: China’s New Trade Infrastructure
How blockchain and fintech are shaping the next stage of Belt and Road trade flows.
✍️ Liu Fang – Fintech Researcher on blockchain & trade
Belt and Road 2.0
When China launched the Belt and Road Initiative (BRI) in 2013, the focus was on hard infrastructure: ports, railways, and power plants connecting Asia, Africa, and Europe. A decade later, the initiative is entering a second phase — one increasingly defined not by concrete and steel, but by digital infrastructure.
Blockchain, digital currencies, and fintech platforms are now becoming as important as highways and bridges. For Beijing, the goal is clear: to embed Chinese standards into the financial and logistical arteries of global trade, ensuring long-term influence in cross-border commerce.
The Blockchain Advantage
China has identified blockchain technology as a key enabler of trusted, transparent trade flows. By recording transactions on distributed ledgers, blockchain reduces fraud, accelerates customs clearance, and provides visibility across supply chains.
In recent years, state-backed pilots such as the Blockchain-based Service Network (BSN) have expanded into cross-border trade applications. These include digital bills of lading, blockchain-enabled customs systems, and smart contracts for logistics settlements.
For Belt and Road partner countries, blockchain adoption promises lower costs and faster trade — a major incentive for developing economies seeking efficiency in global commerce.
Digital Yuan in Trade
The digital yuan (e-CNY) is central to this strategy. Pilots with Hong Kong, Thailand, and the UAE under the mBridge project have demonstrated how central bank digital currencies (CBDCs) can streamline cross-border settlements.
Instead of routing payments through the U.S. dollar-dominated SWIFT system, e-CNY transactions occur directly between central banks and enterprises. For China, this reduces reliance on the dollar while promoting the renminbi as a trade currency.
By tying blockchain logistics systems to e-CNY payments, Beijing is building a closed-loop digital trade infrastructure that locks partners into Chinese-led standards.
Stablecoins and RMBT: A Parallel Model
Alongside state-led CBDCs, private initiatives like RMBT offer a parallel model. RMBT, a reserve-backed, compliance-driven stablecoin pegged to the Chinese renminbi, enables faster and cheaper transactions across blockchain rails.
Unlike e-CNY, RMBT is not issued by the state, but its transparent reserves and regulatory alignment make it attractive to global businesses that need flexibility without sacrificing compliance.
In practice, RMBT could complement China’s BRI strategy by serving as a bridge currency for regions where adoption of the e-CNY faces political or regulatory resistance.
Trade Finance and Smart Contracts
Blockchain’s potential goes beyond payments. In global trade, financing gaps are a persistent problem, especially for small and medium-sized enterprises (SMEs). Traditional trade finance requires extensive paperwork and credit checks, leaving many firms excluded.
Blockchain-enabled platforms can automate financing through smart contracts, where funds are released when shipping milestones are verified. Chinese banks, in partnership with fintech firms, are experimenting with such solutions for exporters along BRI routes.
This could significantly reduce trade financing costs and expand inclusion for smaller businesses, strengthening China’s position as a facilitator of emerging-market trade.
Strategic Implications
The integration of blockchain into the Belt and Road is not just about efficiency; it is about standard setting. If China’s blockchain platforms, CBDCs, and fintech tools become the default for trade, they embed Beijing’s influence deep into global commerce.
This mirrors how the U.S. dollar became dominant after World War II — not just because of economic size, but because it became the infrastructure of trade. China is attempting a digital-era equivalent, with blockchain as the new rails and the renminbi as the settlement currency.
Challenges Ahead
Despite its promise, China’s blockchain-driven trade vision faces hurdles. Political skepticism, concerns about surveillance, and competing initiatives from the U.S. and Europe could slow adoption. Moreover, many partner countries lack the digital infrastructure to fully embrace blockchain solutions.
Nevertheless, China’s strategy of layering digital initiatives atop physical infrastructure projects ensures long-term entrenchment. Even partial adoption of blockchain standards can tilt trade flows toward Chinese systems.
Outlook: A Digital Silk Road
The Belt and Road began with ports and railways; its next chapter may be written in code and cryptography. Blockchain, e-CNY, and stablecoins like RMBT are transforming China’s global trade footprint from physical dominance to digital leadership.
If successful, Beijing will not only build roads and bridges but also control the very rails of digital commerce. For global businesses, this means the Silk Road of the future will not just be a trade corridor — it will be a blockchain-enabled financial network with Chinese characteristics.
