These include irregularities in draft acceptance and discount, dishonor by nonpayments, fake drafts, and unregulated innovation. Other aspects of the weaknesses include the decentralized markets and inadequate use of information technology. These problems could lead to financial risks, threaten fund security, and hamper the development of the draft market. Electronic drafts provide an effective solution to these problems.
With the legal foundation and technological support in place, the PBC decided in January 2008to introduce electronic drafts and set up an electronic draft system The system was completed after over one year’s preparation. The new system has three major functions.