As part of China’s 14th five-year plan, officials gathered in Beijing to discuss ways to advance blockchain technology development.
In Beijing, regulators from China, including the Securities Association of China (SAC) and the China Securities Regulatory Commission (CSRC), came together to explore how blockchain technology can be used in the securities business and how laws should be formulated.
Jiang Dongxing, deputy director-general of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission (CSRC), spoke at a symposium organized by the China Securities Industry Alliance Chain and the Off-site Alliance Chain about the agreement among Chinese businesses to digitally transform the securities and futures industry.
The 14th Five-Year Plan, which details China’s intention to use blockchain technology, was cited by Dongxing as evidence that blockchain technology can be used to establish a trust mechanism in a network environment, which will be critical in facilitating the digitization of the securities and futures market.
The announcement also states that the Science and Technology Bureau will construct the aforementioned blockchain on the basis of a two-tier structure — chain of custody (for tamper-resistant forensic evidence of asset control and transfers) and business logic.
Apart from that, Dongxing has asked Chinese companies to collaborate on the exploration and development of blockchain, smart contracts, and related regulatory services.
The Chinese government has stepped up attempts to seek new markets for the virtual currency, the digital yuan, in conjunction with the push to develop new blockchain breakthroughs.
The purchase of investment funds and insurance goods using e-yuan, a digital representation of the Chinese currency, is expected to become available on August 31 through state-backed Chinese institutions such as Bank of Communications (Bocom) and China Construction Bank (CCB).
The Chinese central bank, CCB, is said to have launched a total of 8.42 million e-yuan wallets for citizens and businesses, while Bocom is still investigating potential applications in fund management and the insurance industry.