China to apply blockchain technology in cross-border financing
China is researching the application of blockchain and aritificial intelligence (AI) in cross-border financing.
According to Reuters; Lu Lei, a deputy head of the State Administration of Foreign Exchange (SAFE), claimed: “We need to pay special attention to the rapid development of digital finance and fintech […] When we are not entirely certain where a (new) form of business is heading, we must pay attention to risk management.”
As the world remains suspicious of Facebook’s cryptocurrency, Libra, and the threat it holds against monetary systems, privacy and money laundering, China passes a new cryptography law as the country readies itself to launch its own digital currency.
Lu argues that setting a sound financial infrastructure which embraces digital technology is key for good risk management. Shanghai is a great environment for China to achieve that.
With the vicious trade war against the US still going, China plans to open its capital markets further. This includes the bond market and a reduction of the excessive regualtion imposed on outbound investments which allow foreign investors to raise capital locally.