Per an official post, the Securities Association of China held a symposium to improve their securities industry via the application of blockchain technology and smart contracts.
The Asian giant has shown hostility towards the crypto industry, banning Bitcoin miners and shutting down companies for crypto-related transactions, as Bitcoinist has reported. However, there is a different narrative on blockchain and its potential.
The symposium was held in Beijing with participation from Jiang Dongxing, the Deputy Director-General of the Science and Technology Regulatory Bureau of the China Securities Regulatory Commission (CSRC), and Lu Hua, Secretary-General of the China Securities Industry Association.
Dongxing referred to blockchain as a “key technology and infrastructure” that could support the digital “transformation” of the securities industry. This technology is part of China’s “14th Five Year Plan”.
Thus, the national government is committed to injecting a lot of resources to accelerate their efforts to increase their technological capacities in blockchain, cloud platforms, certification networks, big data warehouses, and other fields regarded as a priority.
In that sense, Dongxing said China will use blockchain to create the “trust mechanism” that will support their securities industry and its rules in a digitized future. There have been some attempts to implement blockchain in the futures and securities sector.
For example, China built a central chain of supervision for the CSRC, a stock exchange chain, a securities alliance blockchain, and others. Regulators are planning to build a new blockchain infrastructure, Dongxing said, based on a “two-tier structure”: a blockchain for custody, and business.
In that sense, China seems to have the intention of applying Bitcoin, Ethereum, and cryptocurrencies’ underlying technology in a manner that goes opposite to the ethos of the industry. This new blockchain infrastructure will be centralized, “unified”, interconnected, and will aim to create a “common governance”.
China To Leverage Smart Contracts And Blockchain To “Enhance” Regulators
The Deputy Director-General of the Science and Technology Regulatory Bureau of the CSRC stressed that authorities need to develop use cases for this new blockchain in the business and private sector. Also, he emphasized the need to apply “off-site” smart contract applications.
In that way, authorities will improve their oversight of the securities industry and attempt to improve their “regulatory services”.
On the other hand, Lu Hua claimed that the Securities Industry Association has been exploring the aforementioned technologies. Thus, it launched the Securities Industry Alliance Chain and a new system “draft supervision system”.
In doing so, China will have new tools and standards to register businesses and supervised investments. This blockchain is still under development and regulators claimed that it will be used and adjusted to market demand, technical standards, programs, and other works.
At the time of writing, Bitcoin trades at $47,379 with minor losses in the daily chart.