Comply with the trend of the times and push the development of blockchain industry norms

On October 24th, the Political Bureau of the CPC Central Committee conducted the eighteenth collective study on the status quo and trends of blockchain technology development. In his study, General Secretary Xi Jinping emphasized that the integrated application of blockchain technology plays an important role in new technological innovation and industrial transformation. We must use the blockchain as an important breakthrough for independent innovation of core technologies. The collective study of the Central Political Bureau pointed out an important direction for the development of China's blockchain industry.

I. Background of the intensification of international competition in financial technology

The author believes that it is time to vigorously promote the orderly development of the blockchain industry. First, US Internet technology giant Facebook plans to release the stable currency Libra in 2020. Such a stable chain project based on blockchain technology, once run smoothly, may cause resistance to overseas expansion of China's third-party payment companies (especially Alipay and WeChat payment) and RMB internationalization, and may be generated with the digital currency issued by the People's Bank of China. competition. With the convenience of blockchain point-to-point transmission, Libra may even have a certain impact on the status of the RMB, China's financial system and monetary policy if it penetrates into the Chinese market in the future.

Second, financial industry developed countries such as Japan, Singapore, and the United Kingdom have been pushing blockchains and blockchain-based digital asset industries in an inclusive manner in recent years. Some countries have also achieved remarkable results in blockchain and industry integration. Both form competition for the Chinese blockchain industry.

Third, in the past few years, China's blockchain technology has developed more slowly. In particular, due to the negative impact of the ICO incident and some criminal acts of fraud in the blockchain, the central blockchain industry was affected by the central bank and other seven ministries in September 2017. Constraints have had some impact on the development of the industry.

Developed countries are accelerating the development of blockchain technology. The Chinese market is huge, and it is a large country in the field of blockchain, with a good market base. Therefore, in the context of increasing international competition in financial technology, China has vigorously promoted the development of blockchain technology and industrial innovation, and promoted the development of blockchain and economic and social integration, which is in line with the trend of the times.

Second, the focus of current blockchain technology development

General Secretary Xi Jinping stressed that it is necessary to strengthen basic research, enhance the original innovation ability, and strive to let China take the leading position in the emerging field of blockchain, occupy the commanding heights of innovation, and gain new industrial advantages. This clearly points out the important issues in the current development of the domestic blockchain. China's blockchain technology is particularly inadequate in basic R&D, such as innovative source code development.

According to the author's recent research and interviews, the projects developed by some blockchain companies in China basically refer to the ready-made source code developed by foreign technical experts. What's more, some domestic projects directly source the source code or business model of foreign institutions. Although China has gradually become a major country in the application of blockchain, it is not a strong country in the development of blockchain technology. From a global perspective, in recent years, China's blockchain technology patents accounted for 80% of the total, but in terms of technical originality, it needs to be improved. The Politburo of the Central Committee pointed out that "strengthening basic research and enhancing original innovation capability" is the top priority of China's current blockchain technology, and should be highly valued by relevant departments and talent cultivation institutions.

Therefore, in order to realize the blockchain as an important breakthrough for independent innovation of core technologies, it is necessary to make efforts in personnel training in related fields such as blockchain and promote the close integration of production, learning and research. At present, the “fresh coins” in the blockchain sector are overheated and should be appropriately cooled down. The concentration of social attention should be transferred to the core technology research and development and industrial integration to prevent the realization of the reality.

Third, promote the development of blockchain technology norms to prevent industry risks

In the past ten years, there have been many risks and problems in the blockchain field, including a large amount of ICO financing inside and outside the country suspected of fraud, virtual currency trading insider manipulation, and money laundering and pyramid schemes through virtual currency. Strengthen the guidance and regulation of blockchain technology, strengthen the research and analysis of blockchain security risks, and the significance of the normative development of blockchain industry.

Collective study by the Central Political Bureau is equivalent to popularizing blockchain knowledge to the entire population. On the one hand, this will set off a new upsurge in the development of the industry. Intuitive performance, blockchain stocks rose across the board in China's securities market. On the other hand, new hot spots in the industry will inevitably lead to the intention of some criminals to use the name of the blockchain to commit crimes. Therefore, China's financial regulatory agencies and political and legal departments should be committed to promoting a good environment for the creation of blockchain entrepreneurship innovation, while resolutely cracking down on the various names of fake blockchains, implementing various crimes, and truly implementing the blockchain industry norms. The spirit of development.

Fourth, the rule of law is the basis for enhancing the international competitiveness of the blockchain industry

The Central Political Bureau collectively learned to guide and promote blockchain developers and platform operators to strengthen industry self-discipline and implement safety responsibilities. It is necessary to implement the rule of law network into the management of blockchain and promote the safe and orderly development of blockchain. General Secretary Xi Jinping’s speech contains three signals: one is the blockchain or new things, so it should be observed its development trend; the second is to emphasize the establishment of the rule system of the blockchain industry and promote self-discipline in the industry; At present, the blockchain is still in the early stage of development, and supervision needs to be inclusive and prudent, allowing standardized blockchain enterprises to explore and try and make mistakes. To this end, regulators must clarify the bottom line thinking, introduce a negative list, and point out a clear development path for blockchain companies. More importantly, in the face of the new situation, regulators should reshape the rule of law thinking of legislation, regulation and governance.

Regulators and law enforcement agencies should focus on the regulation and governance of blockchain from the perspective of the rule of law, making the rule of law the basis for enhancing the competitiveness of China's blockchain enterprises. The "Decision of the Central Committee of the Communist Party of China on Comprehensively Advancing Several Major Issues Concerning the Rule of Law" adopted by the Fourth Plenary Session of the 18th CPC Central Committee pointed out that governing the country according to law is the essential requirement and important guarantee for upholding and developing socialism with Chinese characteristics, and is the realization of the national governance system and governance. The inevitable requirement of modernization of capabilities. The rule of law is the foundation of the national governance system and governance capacity. Incorporating all aspects of the blockchain innovation development into the track of legal governance, and improving the blockchain innovation and competitiveness through the rule of law is also a concrete manifestation of the party leading the people to achieve modernization of governance capabilities.

Strict implementation of the rule of law in the field of blockchain, its important role is to provide relevant enterprises with certainty of industry development and market predictability. The essence of this certainty and predictability is to protect the property security, transaction security and various rights related to each specific blockchain-related enterprise and citizen in the spirit of the rule of law.

At the same time, the blockchain industry is partially reconstructing the basic framework of the financial legal system. As the blockchain has the characteristics of peer-to-peer, borderless and no specific legal responsibility, it brings great convenience and brings financial Risks in other fields require the state to regulate and even legislate to promote the safe and orderly development of the blockchain industry.

The author first suggested that the regulatory agencies strengthen international cooperation and strengthen international supervision. Secondly, it is recommended to establish self-discipline rules in the industry through industry self-discipline, and implement the self-governance of the industry by the “soft law” of self-discipline rules, which complements the external supervision of the government. Finally, through the effective communication and negotiation between the regulatory agencies and industry self-regulatory organizations and other blockchain technology participants, the formation of national norms and the realization of “hard law” governance. This law and its implementation, which represents the compromise of the will and interests of the parties, is the cornerstone of effectively promoting the rule of law in the blockchain industry.

(The author is a professor at the Central University of Finance and Economics Law School)