China Plans To Launch Blockchain Infrastructure
Last updated on November 1st, 2022 at 12:15 am
Chinese market regulators have met to discuss crypto regulations and ways to foster the growth of blockchain technology in the securities sector.
During this meeting, one of the notable speakers was Jiang Dongxing, the Deputy Director of the Science and Technology Division at the CSRC.
In his speech, Dongxing shed light on the joint decision by businesses in China to transform the securities and futures sectors digitally.
Part of the 14th Five-Year Plan
Dongxing mentioned that promoting the use of blockchain technology was in line with China’s 14th Five-Year Plan.
He also mentioned that through blockchain technology, firms could develop a trust framework that would help in boosting network capability. This will play a major role in digitizing the securities and futures sectors, fostering increased security.
According to the announcement, the Bureau of Science and Technology has a sophisticated roadmap to develop the blockchain. The bureau will base the construction of the blockchain platform on a two-tier model.
This model will include a Chain of Custody to help collect evidence of asset control and transfers in a secure manner that eradicates tampering. The other structure will include smart contracts and supply chain processes that will aid in businesses.
Dongxing has also asked Chinese businesses to support these blockchain efforts.
According to him, Chinese businesses should come together to explore and create a blockchain network that will involve smart contracts and other similar regulatory offerings.
Chinese Efforts For Digital Yuan
China has been very vocal regarding its efforts to develop and promote the Digital Yuan.
Chinese banks recently announced that there were exploring the Digital Yuan and how it can be used in services such as insurance and investment funds. These blockchain development efforts will also bolster the ecosystem for the Digital Yuan.
China is also exploring new markets that will boost the adoption and promotion of the Digital Yuan in China and across the borders.
In late August, Chinese Banks that have support from the state, such as the Bank of Communications (Bocom) and the China Construction Bank (CCB), announced that they would allow their customers to use the Digital Yuan for a wide range of services. Such adoption would allow these customers to use the eyuan the same way as they would fiat currency.
Bocom is still exploring more use cases for China’s central bank digital currency to ensure it gains increased adoption in custody services and the insurance sector.
CCB has also reported increased interest in the digital currency. The bank states that it has opened a total of $8.42 Million Digital Yuan wallets for its retail and institutional investors.
China has put efforts to foster the growth, recognition and adoption of the Digital Yuan, which has made it one of the most advanced CBDCs.
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