China will extend its blockchain cross-border funding pilot program. According to Reuters, Lu Lei, Deputy Head of the Foreign Exchange State Administration (SAFE), made his comments at a forum in Beijing where he said the regulator should improve the convergence of fintech and the foreign exchange market while keeping a focus on technology development supervision.
Lu added that the cross-border blockchain funding program of the SAFE is currently the only one licensed by a central government entity at the Chinese Cyberspace Administration (CAC).
As per SouthChina Morning Post these Initiatives are aimed to improve the incorporation of China’s financial technology and the foreign exchange market. Lu said (the government) will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency and explore the construction of the foreign exchange regulation and technology system under the new situation.”
According to Global Times, a newspaper published by the official People’s Daily, the platform was first introduced in March and extended to 19 provinces and cities in November. Cao Yin, an analyst in the blockchain market, told the Global Times that the use of blockchain is a “milestone” in cross-border finance and export trade, since it replaces human labor in traditional financial institutions with a cryptographically secure and tamper-proof system.
Over the past few months, Blockchain has attracted a lot of attention after Chinese President Xi Jinping said China should boost the development of blockchain technology, a distributed ledger that forms the backbone of many cryptocurrencies including bitcoin. Xi’s remarks sparked a rush into the shares of companies involved in or believed to be actively involved in blockchain or digital currency-related enterprises.
China has been researching the use of blockchain and artificial intelligence in cross-border finance, focusing on risk management by further liberalizing its capital markets.