Bank of China started its first pilot project last year regarding regulations related to innovation in the field FINTECH in Beijing. In other words, it started with something like a regulatory sandbox. April 27 bank announced plans to extend the initiative to another six cities.
Bank of China and its pilot projects
The bank is now planning additional pilot projects in Shanghai, Chongqing, Shenzhen, Hebei Xiong’an New District, Hangzhou and Suzhou. The goal is to improve overall financial services under “Real economy”.
The institution believes that market regulation of fintech projects will help protect consumer rights. At the same time, it will help small and micro enterprises survive the financial difficulties that occur during a coronavirus pandemic. In its announcement, the bank stated:
“Our goal is to address the pandemic and help enterprises resume work and production.”
Already at the end of 2019, an outline was also published “Fintech Development Plan (2019-2021)”. In line with the concept, strengthening regulations on the fintech market, but also establishing and improving it “Basic regulation system” is one of the bank’s main goals, which it wants to delay for a few years.
“The plan proposes that by 2021 China establish and improve the eight pillars of Chinese fintech development, including: […] accelerating the development of basic regulatory provisions; monitoring analyzes and assessments; examining regulatory mechanisms of innovation in the fintech industry and comprehensive financial statistics; strengthening the specialization, unification and comprehensiveness of financial regulations “
– added in the document.
China’s technological center of the world?
Already in 2019, the Chinese president admitted that he supports the development of technology blockchain in the Middle Kingdom. His country generally has clear ambitions to become a technological center of the world. China has ceased to respond to the role of “assembly”, now they want to create innovation and modern solutions. Creating specific regulatory sandboxes can help them with this.
In addition, in the background, works are ongoing on the digital yuan, which are so advanced that we already know, for example, what the mobile application of the project looks like. So it is real that China will broadcast a new version of the yuan later this year. Thus, they will become the first power on the globe that will have its own CBDCA.
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