China has made its plans clear to expand the scope of its current pilot program. This program makes use of a blockchain-based network to facilitate cross-border financing. The issue was addressed via a senior official within the country’s regulator of foreign exchange, having done this on Tuesday.
Gradually Expanding the Project’s Scope
The news came by way of Lu Lei, the deputy head of SAFE, or State Administration of Foreign Exchange. Here, Lu Lei told a forum that happened in Beijing that the regulator will start to consolidate fintech and foreign exchange market consolidation. This will be done while maintaining a short leash on technology development in terms of supervision.
Lu explained that SAFE would “gradually expand the scope of the pilot and the application scenarios of blockchain technology.” In particular, this development will focus on “cross-border financing and macro-prudential management,” said Lu.
Further Development In Fintech Planned
While SAFE is doing this, Lu states that China’s government will start a prospective study on the foreign exchange industry. Through doing so, China plans on implementing reforms that will adequately deal with cryptocurrency. Along with that, the country plans on exploring the construction of its own foreign exchange regulation and development of technology systems that will be operational in these new situations.The only cross-border financial platform that is registered with the Cyberspace Administration of China is SAFE’s own platform, Lu says. What he means by this is unclear, but a state regulator acting within the satisfaction of another central state agency is hardly noteworthy.
The platform initially started out with nine provinces in March but has recently expanded to incorporate 19 separate provinces and cities, according to the Global Times. An important fact to remember is that the Global Times is a newspaper published by the People’s Daily, a Chinese media group.
China’s President Urges Blockchain Acceptance
The entire blockchain industry has gained much of China’s interest these past few months. The highlight of this year’s interest is undoubtedly the time when the Chinese president, Xi Jinping, urged the People’s Republic of China to embrace the blockchain industry. Blockchain technology is a fundamental aspect of most forms of cryptocurrency, using a decentralized ledger to keep track of the information within the network accurately.
Xi Jinping’s words sparked an outright bullrush in the shares of firms that are either engaged in, or suspected to be involved in, blockchain technology. This includes cryptocurrencies, whom China has had little tolerance for. It seems that China wants to keep Chinese funding out of the crypto industry until they’re good and ready for it with their own crypto.