• China’s new blockchain infrastructure will be used to digitize securities and futures contracts

  • A meeting of Chinese regulators was held in Beijing to promote blockchain development, which was first mentioned in China’s 14th Five-Year Plan.

    Chinese regulators, including the Securities Association of China and the China Securities Regulatory Commission (CSRC), met in Beijing to promote blockchain technology and discuss regulations in the securities industry.

    Jiang Dongxing, deputy director-general of the CSRC’s Science and Technology Regulatory Bureau, spoke at a symposium organized by China Securities Industry Alliance Chain and Off-Site Alliance Chain about the Chinese business consensus to digitally transform the securities and futures industry.

    Dongxing stated that blockchain technology can build a trust mechanism in the network environment, which will be critical to the digitization of the securities and futures industry, citing the 14th Five-Year Plan, which details China’s intent to use blockchain technology.

    According to the announcement, the Science and Technology Bureau will build the blockchain on a two-tier structure: a chain of custody (for tamper-resistant forensic evidence of asset control and transfers) and a business layer (smart contracts and supply chain).

    Furthermore, Dongxing has asked Chinese companies to collaborate on the development of a blockchain, smart contracts, and related regulatory services.

    Along with the push to develop new blockchain technologies, China has increased efforts to explore new markets for the digital yuan.

    On Tuesday, state-owned Chinese banks such as Bank of Communications (Bocom) and China Construction Bank (CCB) will reportedly allow citizens to purchase investment funds and insurance products using e-yuan, a digital form of the local currency.

    While Bocom continues to investigate e-yuan use cases in fund management and insurance, CCB has reportedly opened 8.42 million e-yuan wallets for citizens and businesses.

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