China’s Securities Regulatory Commission (CSRC) will promote a
national alliance chain to introduce smart contracts and
blockchain-based services to digitize the securities and futures market.
The announcement was made at the China Securities Industry Alliance
Chain and OTC Alliance Chain Special Work Symposium in Beijing. Jiang
Dongxing, deputy director of the Science and Technology Regulatory
Bureau of the CSRC, stated this digitization is key for the future of
the industry.
China Aims to Digitize Financial Markets Using Blockchain
The China Securities Regulatory Commission (CSRC) is interested in digitizing
much of the securities and futures markets using alternatives such as
blockchain and smart contracts, according to discussions that happened
during the China Securities Industry Alliance Chain and OTC Alliance
Chain Special Work Symposium recently held in Beijing. Jiang Dongxing,
deputy director of the Science and Technology Regulatory Bureau of the
CSRC, made some important remarks on the subject.
Dongxing stated that the most important task at hand was to study how
to advance the digital transformation of the securities and futures
industry and find a way to achieve that digital transformation.
Dongxing also stressed that the appeal of blockchain consisted in
establishing a trust mechanism in the network environment, and that it
will be the key information infrastructure for the securities and
futures industry in the digital space after the proposed digitization.
The 14th Five Year Plan
China has established
blockchain as part of the 14th “Five-Year Plan” for the country. These
are roadmaps developed by the Communist Party to shape the key focus of
the economy in the next five years. Blockchain, along with artificial
intelligence and big data, is mentioned in the latest plan. In spite of
these proclamations, the country has taken a hard stance on
cryptocurrencies, which are an application of blockchain technology in
the monetary field. This has come to be known as the “blockchain, not
bitcoin” policy.
In fact, the Chinese government has moved to forbid cryptocurrency
mining from several provinces of the country, including Sichuan and
Yunnan. This caused a global drop
in the amount of work securing the Bitcoin blockchain and a subsequent
decrease in the difficulty of mining. In the same vein, The People’s
Bank of China conducted
a series of crackdowns on illegal cryptocurrency trading activities in
August and shut down 11 companies that were allegedly conducting illegal
virtual currency transactions.
source link : https://news.bitcoin.com/chinese-csrc-aims-to-digitize-securities-market-using-blockchain-and-smart-contracts/
