On July 8th, the launching ceremony of the Digital Finance Open Research Program and the first academic seminar were held in Beijing today. Wang Xin, the director of the Central Bank Research Bureau, attended and delivered a speech.
Wang Xin said that the central bank's digital currency will help improve the effectiveness of monetary policy, optimize the central bank's monetary payment function, and increase the central bank's monetary status and the quantity of money. At the same time, however, financial technology has increased the risk of financial disintermediation and brought about regulatory arbitrage risks. The development of financial technology has made financial transactions faster and cheaper, so that funds bypass the existing commercial banking system and are directly transmitted to capital demanders and financiers. The status of commercial banks' financial intermediaries is relatively reduced, and financial transactions are separated from existing financial supervision. Increasingly serious, bringing regulatory arbitrage risks.
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Wang Xin pointed out that many Internet companies in China are transforming into financial technology companies, and their financial supervision issues cannot be ignored. There are differences in the regulatory concepts, models and specific measures of digital finance in various countries, and the issue of transnational regulatory arbitrage is difficult to avoid.
Wang Xin said that the People's Bank of China attaches great importance to the research and development of financial technology applications. In 2014, it organized research on digital currency research. In 2015, the Financial Research Institute established the Internet Finance Research Center. In May 2017, the Central Bank Digital Money Research Institute was officially listed. Strengthen the research planning and overall coordination of financial science and technology work. In May 2017, the central bank established the Financial Science and Technology Committee. With the approval of the State Council, the central bank is organizing market institutions to jointly develop DC/EP (payment instruments with digital currency characteristics).
Wang Xin stressed that it is necessary to strengthen the construction of digital financial infrastructure. At present, there are problems such as data fragmentation, information islands, and data monopoly. How to formulate data standards for digital finance, promote the unification of data standards, and improve the machine readability of data is a problem that needs to be solved. He said that it is necessary to strengthen international coordination and cooperation in the field of digital finance, strengthen international consultations in libra and central bank digital currency, and express concern and promptly promote international standards and rules that are conducive to China. (Sina Finance)