China is reportedly looking into the various use cases for Blockchain technology and artificial intelligence in (AI) in international financing with a specific focus on risk management procedures.
China is looking to do this because it intends to liberalize its financial markets, according to a veteran foreign exchange regulatory official Lu Lei. The comments by Lu Lei, who is the deputy head of the State Administration of Foreign Exchange (SAFE) in China, come at a time where Facebook’s Libra project is center of attention for both regulators and investors.
Lu stated that despite the heated debates worldwide wound the Libra stablecoin, SAFE intends to explore the application of AI and Fintech in international trade finance, and also in macro prudential management. While speaking at a Shanghai conference Lu stated;
“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.”
While Facebook’s Libra has been getting heat due to the threat the project may pose to the world’s global financial order, and its implications on data privacy, China is on course to introduce its own national cryptocurrency. On October 26, the Chinese congress proposed a new cryptography law to prepare the country for the national digital currency. Lu stated that Shanghai, being the country’s leading financial hub would do well to adopt digital technology as it prepares its various platforms in payment and settlement. Aside from his blockchain advocacy, Lu also plans to help broaden China’s financial markets. This includes the country’s bond markets as well as plans to bring together multiple investment channels for overseas investors.
China’s new resolve to explore crypto was made clear by the country’s President Xi Jinping who spoke favorably of crypto last week. Many have speculated that Xi Jinping’s remarks led to the amazing Bitcoin rally that witnessed during the weekend.
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