Skip to main content

Chinese Regulator Aims to Digitize Securities Market Using Blockchain and Smart Contracts

chinese

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.

What do you think about using blockchain to digitize the securities market? Tell us in the comments section below.



from Bitcoin News https://ift.tt/3DyaeQ5
Labels:

Comments

Post a Comment

Popular posts from this blog

Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’

On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a recent letter that the rehabilitation custodian is “currently preparing to make repayments” to Mt Gox creditors. Trustee Updates Mt Gox Creditors — Repayment Date and Exchange Still Unknown Last week speculation and rumors concerning the release of 140K bitcoin ( BTC ) from Mt Gox littered social media platforms and headlines. Bitcoin.com News covered the situation six days ago as a number of people and Mt Gox creditors called the rumors “ fake news .” During that same period of time, a bitcoin whale transferred 10,000 BTC to unknown wallets, and a 2018 annotation , heuristics, and clustering methods show the funds likely originated from the June 2011 Mt Gox hacks. Following the mysterious whale transfer, last Wednesday, Mt Gox published an official update from the court trustee Nobuaki Kobayashi that explains the court is “currently preparing to make repayments” to creditors. Mt Gox creditors have been wait...
Post a Comment
Read more

Fidelity Discusses Bitcoin as Portfolio Insurance — Could Soon Stand in ‘Stark Contrast’ to Path Fiat Currencies Take

Fidelity Digital Assets, a subsidiary of Fidelity Investments, says that bitcoin could be considered portfolio insurance. The firm notes that the cryptocurrency “may soon stand in stark contrast to the path that the rest of the world and fiat currencies may take — namely the path of increased supply, additional currency creation, and central bank balance sheet expansion.” Fidelity Says Bitcoin Could Be Portfolio Insurance Fidelity Digital Assets, a subsidiary of Fidelity Investments, recently published a research study titled “The Rising Dollar and Bitcoin.” The research outlines “how bitcoin could be considered portfolio insurance” as the rising dollar impacts global currency markets. “The strengthening U.S. dollar is wreaking havoc among other countries and may put pressure on the Federal Reserve to soon reverse its tightening monetary actions, something that has precedent based on 1985’s Plaza Accord,” Fidelity explained. In addition, “more monetary debasement may be needed to ...
Post a Comment
Read more

Economists Discuss Russia, China Potentially Developing Gold-Backed Currency That Could Undermine US Dollar

Economists have weighed in on reports that China and Russia may be developing a new gold-backed currency that could undermine the U.S. dollar’s status as the world’s primary reserve currency. Russia and China May Be Developing Gold-Backed Currency Several experts have shared their views on Russia and China potentially creating a new gold-baked currency, Fox Business reported Saturday, emphasizing that China has been buying up huge quantities of gold while Russia was forced off the U.S. dollar due to sanctions imposed on the country following its invasion of Ukraine. The news outlet noted that some experts have cautioned that these moves, along with the closer relationship that has developed between Moscow and Beijing, point to the likelihood of China attempting to launch a gold-backed currency. However, neither Russia nor China has officially confirmed plans for such a currency. Craig Singleton, senior fellow at the Foundation for Defense of Democracies and a former U.S. diplomat,...
Post a Comment
Read more