China’s love for blockchain continues with its regulator planning an expansion of a foreign exchange pilot.
It also appears the new stance could inform the country’s future approach towards cryptocurrencies. This happens even as authorities look to institute reforms in the country’s forex markets.
According to a Reuters report published on December 24, the potential for a positive approach to crypto could follow China’s expansion of a pilot cross-border financing program. The pilot launched in March 2019 and has targeted blockchain financing programs in 19 of the country’s provinces.
The report quotes the State Administration of Foreign Exchange’s (SAFE) deputy head Lu Lei, who spoke on the matter on Tuesday.
According to Lu, China wants to “gradually expand the scope of the pilot,” with much more focus on the use of blockchain technology in trumping up cross-border financing. The other area would be on how to harness the emerging technology to anchor macro-prudential management.
Speaking in Beijing Lu added:
“[We] will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency.”
The country will also use the expansion to “explore” ways of developing foreign exchange regulations, he said. That move will also rope in the new technology system.
The high ranking SAFE official also noted that China is set to reinforce its approach towards fintech even as they integrate development in the sector with regulatory measures targeted for the foreign exchange market.
Pilot recognized by the state
Chinese companies have in the past few months doubled up on their efforts towards the integration of blockchain technology.
However, while China’s love for blockchain has seen companies registered thousands of projects; SAFE’s cross-border financing pilot remains the only so far pushed by a central state agency.
Lu made this remark referencing figures at the country’s Cyberspace Administration (CAC). In October, Chinese President Xi Jinping called on authorities toenhance blockchain use in the country. And more recently, the country’s central bank announced progress in its plan for a central bank digital currency.
The blockchain pilot news carries positive sentiment but comes just days after China seized close to 7,000 mining machines. According to authorities, the miners were illegally tapping into the country’s power grid.
Authorities confiscated 6,890 ASIC miners, with the combined police and electricity officials’ investigation also netting 52 power transformers.
Featured Image: Courtesy of Shutterstock