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China’s Financial Authorities Propose Blockchain Pilots in Equity Market and Trade Finance

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It is reported that the CSRC issued a letter on February 24 on the reply to the proposal No. 03009 (Finance, Taxation and Finance No. 199) of the fifth meeting…

Chinas Financial Authorities Propose Blockchain Pilots in Equity Market and Trade Finance

It is reported that the CSRC issued a letter on February 24 on the reply to the proposal No. 03009 (Finance, Taxation and Finance No. 199) of the fifth meeting of the 13th National Committee of the CPPCC. It is proposed that, according to the Notice on Printing and Distributing the National Blockchain Innovation and Application Pilot List issued by the Central Cyberspace Office, the People’s Bank of China and the Securities Regulatory Commission actively cooperate with the Central Cyberspace Office to carry out the national blockchain innovation and application pilot work, and take the lead in establishing the national “blockchain+equity market” and “blockchain+trade finance” pilot areas. At present, the application pilot work is being carried out in an orderly manner. In the next step, the People’s Bank of China and the CSRC will strengthen the organizational leadership, focus on coordinated promotion, further strengthen capacity building, and effectively promote the innovative application of blockchain technology in the financial field.

CSRC: Effectively promote the innovative application of blockchain technology in the financial field

Interpretation of the news:


The China Securities Regulatory Commission (CSRC) issued a letter on February 24th in response to a proposal made during the fifth meeting of the 13th National Committee of the Chinese People’s Political Consultative Conference. The CSRC proposed that the People’s Bank of China and the Central Cyberspace Office actively cooperate to set up national blockchain technology pilots in the equity market and trade finance sectors. This move follows the Central Cyberspace Office’s announcement regarding the National Blockchain Innovation and Application Pilot List.

Currently, pilot programs are being executed in a planned and organized manner, and in the next stage, the People’s Bank of China and the CSRC will work together, focusing on enhancing organizational leadership, and promoting coordinated efforts to innovate blockchain technology in the financial industry.

The announcement highlights the Chinese government’s commitment to blockchain technology adoption and innovation as a tool to transform financial services. By setting up blockchain-based financial pilots, the authorities aim to develop practical applications that will increase efficiency, reduce costs, promote transparency, and improve information sharing between different entities and systems in the financial industry.

The “blockchain+equity market” pilot will potentially offer several advantages for equity market participants, such as decentralization, immutability, and increased transparency of trade processes. Blockchain technology can also help to ensure the accuracy of real-time trading data and simplify the settlement process.

The “blockchain+trade finance” pilot will help streamline trade finance processes, which can be complex and time-consuming due to the involvement of multiple parties such as buyers, sellers, banks, logistics providers, and a variety of intermediaries. With blockchain technology, participants can exchange and verify data in a secure, tamper-proof manner, facilitating the financing process.

In conclusion, China’s financial authorities’ proposed blockchain pilots in equity market and trade finance reflect their willingness to leverage technology to streamline operations in the financial industry. The move is consistent with the broader trend where governments worldwide are tapping into the potential of blockchain technology to address longstanding issues and achieve the overall goal of a modernized financial system.

Reference:

https://www.cs.com.cn/ssgs/gszl/202103/t20210303_6189584.html

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