Babbitt Observation | Two Districts in Beijing rush to land in "sandbox supervision", more than 100 banks have entered the field

On December 8th, the 2019 T-EDGE New Financial Summit and CHAINSIGHTS Fintech and Blockchain China Summit hosted by Titanium Media and Chainde was held in Beijing.

Through the sharing of political and business people at home and abroad, we have a clearer understanding of the latest developments in blockchain technology on the policy and industrial side, and we can see 3 phenomena from it.

1. Beijing is expected to take the lead in "sandbox supervision"

At the meeting, Wang Yueli, secretary of the Party Leadership Group and director of the Beijing Daxing District Financial Services Office, said in a speech: "Currently, we are cooperating with China Banking Credit Card Institutions to introduce blockchain technology into the supervision of private equity funds and cross-border finance. District started the construction of the financial supervision sandbox. " Beijing Daxing District's research on the application of blockchain has been launched since last year and has implemented the" Three Ones "strategy. That is: establish a blockchain research and development laboratory, establish a fund to invest in the underlying technology of the blockchain, and open up a number of government resources to provide blockchain technology application scenarios.

A Babbitt reporter asked Fan Guifu, Chairman of China Banknotes Credit Card Group, what role China Banknotes play in it, and he replied: "Government supervision requires a tool. This tool is a blockchain. China Banknotes has a blockchain." A new technology can not only empower finance, but also help supervise and supervise science and technology by means of science and technology.

The "supervisory sandbox" has been eagerly appealed by the industry. For example, the counselor of the State Council's counselor Tang Min proposed at the 2018 People's Daily Blockchain Technology Winter Forum: "Too strict control cannot promote the development of technological innovation. China can refer to the sandbox approach. , That is, pilot first, try it on a small scale in a place or field, and then expand the scope after successful. "

A year later, the Chinese version of the "regulatory sandbox" was finally launched. On December 5, the central bank's official website announced that it “supported the first pilot pilot of fintech innovation supervision in Beijing”. In the afternoon of the same day, the Beijing Municipal Financial Supervision Administration also announced that it would take the lead in launching a pilot for fintech innovation supervision with the guidance and support of the central bank, and explore the construction of a prudent and inclusive Chinese version of the "regulation sandbox." In addition to the public statements of Beijing Daxing District government officials, Sun Shuo, deputy secretary and mayor of the Xicheng District District Committee of Beijing, also revealed that the "supervisory sandbox" mechanism is about to land in Xicheng.

2. Traditional financial institutions accelerate the pace of embracing blockchain

Under the guidance of favorable policies, the action of the "national team" has become more active. Last year, six ministries and commissions including the National Development and Reform Commission of the People's Bank of China, the Ministry of Industry and Information Technology, and the Ministry of Science and Technology led the implementation of fintech application pilots, and approved two pilot projects of China Banknote's blockchain. "Blockchain service platform application" and the other is "Open Blockchain Technology-based Open Financial Service Project" jointly declared by China Bank of China, Hangzhou Bank, and Huzhou Bank.

At the meeting, Fan Guifu, chairman of China Banknotes Credit Card Group, introduced the progress of the "cross-border financial blockchain service platform". The platform went live on March 22. As of December 5, 1662 enterprises have been served, of which 75% are small, medium and micro enterprises. The average size of each document is about RMB 900,000. It has been connected to more than 170 commercial banks and the amount of loans has reached 66 billion.

A Babbitt reporter noticed an interesting phenomenon. In the first 4 months (March to July) after the platform was launched, only 14 commercial banks joined, and 3 months (July to September) after half a year's trial. More than 170 commercial banks have connected one after another. "This is based on voluntary participation by commercial banks and is not mandatory." Fan Guifu said.

It can be seen that after a short observation, more and more banks and financial institutions have begun to actively embrace the new technology of blockchain. The blockchain has indeed improved the efficiency of traditional businesses. Taking export receivables financing as an example, the traditional method requires a 1-2 day process and can be completed in 15 minutes on the platform.

However, although blockchain technology has brought a lot of convenience to traditional finance, Fan Guifu does not agree with the statement that "technology disrupts finance". He said: "Finance and technology are two distinct things. How can we say that technology disrupts finance? Some people say that technology enables finance. I agree with it a bit. In fact, I think that finance and technology are integrated. Finance must be regulated and licensed. Therefore, we must put ourselves in the right position and make technology as finance. service."

3. Alliance chain is still a universal choice for landing in China

How to apply landing is an unavoidable problem for blockchain technology. At the scene, the statement of Hou Yunchun, a member of the 12th National Committee of the Chinese People's Political Consultative Conference and former deputy director of the Development Research Center of the State Council, may represent the mainstream view: 1. Blockchain is a revolutionary technology, and its application has brought major changes in various fields; 2. The full value and vitality of the blockchain lies in the practical application of various industries and fields; 3. The stability and long-term development of the blockchain, and healthy development.

How can blockchain technology be better applied? Based on public chain or alliance chain? We have found that even though the policy level has never stated its position, Chinese companies have already made choices with their feet.

Talking about the relationship between the public chain and the alliance road, Sun Haibo, head of blockchain technology at JD Innovation and Technology Business Department, said that many technical details and technical principles of the alliance chain come from the public chain. They are complementary and not mutually exclusive. The reason why there are many alliance chains in China is not only related to national policy guidance, but also because the public chain is not suitable for the business form of the enterprise, but the future of the public chain is still very promising.

Jia Mu, head of the Cryptocurrency Blockchain team at Financial One Account, said: The alliance chain is not lower than the public chain. In China's volume, any alliance chain in China is larger than foreign public chains. Under regulatory requirements, both the alliance chain and the public chain are weak centers, and the two forms are essentially the same.

Dachang's point of view is reasonable, which made reporters somewhat surprised that Conflux, one of the representatives of China's public chain, also passively opened the alliance chain. Conflux co-founder Zhang Yuanjie introduced: "Conflux has launched the Tree Map Alliance Chain, which responds to the country ’s call for a currency-free blockchain application to avoid the mood of speculation. Therefore, in the direction of the national industry chain, we use the tree map to solve the alliance The needs of the chain. "

After misunderstanding and denigration, blockchain technology was finally "rectified" in China in the 10th year of its birth, and ushered in its spring. But we don't know how long it will take for the public chain technology to unload the sword of Damocles on its head?