China and its tryst with blockchain technology seem to be an unending affair. In recent news, the country revealed its plans for the expansion of its blockchain cross-border financing pilot platform on 24 December. The development has not come as a surprise since China was already reported to be studying the use of blockchain and AI in facilitating cross-border finance.
Greenlight for Expansion
Deputy Head of the State Administration of Foreign Exchange (SAFE), Lu Lei, expressed his approval stating that the foreign exchange regulator would bring about the successful integration of the financial tech and the foreign exchange markets. The collaboration according to him would bring about the best of both worlds in the sector of technology development.
There were also talks of branching out the scope of blockchain technology in applications concerning cross-border financing and macro-prudential management with Lu Lei confirming the scope of global outreach.
The government is also quite keen on reforming the above-said project with a prospective study in the making of foreign exchange reforms dealing with crypto and blockchain technology. The study would focus on the workings of the foreign exchange regulation and technology system under the umbrella of blockchain and cryptocurrency.
SAFE’s cross-border financing blockchain platform is currently the only platform registered under a state agency at the Cyberspace Administration of China (CAC).
The platform first made its appearance in the public sphere when it was launched in March and has now expanded to over 19 cities and provinces.
A Case of Priority
The news for expansion isn’t a surprise as the country is making efforts to stand out as one of the most accepting nations in terms of blockchain technology. In fact, recent news reveal that blockchain technology has now become a national priority for China. The country is working its way to incorporate blockchain technology into its everyday policies. Its CBDC has also been making headlines ever since it was announced.