The world of technology is constantly growing, and the advancements of blockchain and artificial intelligence have created many new opportunities. However, their full extent and the way it can be used has yet to be reached, leading China to decide to perform research as well. According to Reuters, the country is seeking to understand how these two technologies could help with cross-border financing.
The head of the State Administration of Foreign Exchange (SAFE) in China, Lu Lei, remarked that the country will pay the most attention to risk management applications while researching the technologies. These goals of innovating fall along the same goals of President Xi Jinping in China, who recently urged for blockchain technology to be adopted in China.
Lei spoke how important it is to manage the risk, stating,
“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 Lei sees it, the basis of risk management is found within capable financial infrastructure. He aims to open the Chinese capital market, which will include bonds, while consolidating the many investment channels available to foreign investors.
Yesterday, the Standing Committee of the 13th Congress in China reportedly established new law on cryptocurrency. This law is set to go into effect on January 1st, 2020.