- Chinese Central Bank concluded that the economy must develop its tech sector with a focus on blockchain.
- The bank’s deputy governor said it was the need of the hour for China to stay ahead in the sector globally.
The future is online. While the world was moving towards adopting modern technologies anyway, the global pandemic has served as the catalyst that the fintech industry required.
In its first meeting of the year, The People’s Bank of China (PBoC) urged that the country must strengthen its blockchain strategy and tread towards an increasingly tech-based economy, reported Sina.
The central bank’s deputy governor, Fan Yifei, along with company officials and leaders of PBoC’s affiliated financial companies discussed the urgency of embracing blockchain and that financial companies must ensure they implement the ‘FinTech Development Plan (2019-2021)’.
The president said that it is necessary to strengthen fundamental research of blockchain technology and enable China to take a leading position in the blockchain sector.
“We will make full use of the domestic and external strengths of the central bank system to undertake deep fintech research, strengthen the research results with regulatory, application and standardization work, and provide a theoretical foundation for fintech regulation,” Yifei added at the meeting.
Moving towards a digital economy
Stressing on the need for accelerating the digitization of the economy, the highlight of the meeting emphasized that it is necessary “to strengthen the application of regulatory science and technology, actively use big data, artificial intelligence, cloud computing, blockchain and other technologies to strengthen the construction of digital supervision capabilities, continuously enhance the financial risk technical prevention capabilities, and enhance the professionalism, uniformity and penetration of supervision.
“It will contribute to the scientific and technological strength for resolutely winning the battle of financial risk prevention and control and resuming work.”
The key points outlined in the meeting were based on research conducted on the current financial development index system, carefully monitored dynamic after which a comprehensive evaluation was deduced to guide financial institutions for the much-needed digital transformation.
The conclusion of the meeting held that it was necessary to give the utmost attention to bolster blockchain operations in the People’s Bank system to carry out “in-depth financial technology research, strengthen the connection between research results and supervision, application, standards, provide a theoretical basis for financial technology supervision and provide a scientific basis for the introduction of policy systems.
China’s continues to boost its blockchain technology
The Fintech Development Plan revealed in August 2019, focuses on the standardization of cross-market fintech procedures in the country.
The PBoC has this month launched a pilot process for its proposed digital currency yuan, with a host of state-owned banks taking part in the test applications.
Elsewhere, along with developing its blockchain ecosystem, PBoC also stressed on the importance of financial security and warned citizens of fraudulent firms potentially trying to dupe them by offering schemes involving cryptocurrencies, as reported by TechMeru earlier this week.