Regulatory sandboxes respond to blockchain innovation? Bank application scenarios are dominated by intermediate business

Source: Economic Observation Network

Economic Observation Network reporter Wang Han Global fintech innovation practice is on the fast track to accelerate development. After the central government determined the status of the blockchain-based technology in the innovation, the domestic blockchain industry ushered in development opportunities.

Since October 8 last year, Hainan has led the establishment of a blockchain test area, and its layout has accelerated. Chen Yang, Director of the Local Financial Supervision and Administration Bureau of Hainan Province, said at the "Hainan International Offshore Innovation and Pioneering Demonstration Zone Construction and Blockchain · Digital Asset Trading Technology Innovation High-end Forum"

"Hainan will learn from international financial supervision experience, establish a fault-tolerant mechanism, and strive to create a relaxed and orderly business environment while sticking to the bottom line of financial risks and introducing a regulatory sandbox model through digital encryption, blockchain and other models."

With the current development of blockchain, big data, artificial intelligence and other technologies, on the one hand existing legal frameworks impose various restrictions on financial innovation and new business models; on the other hand, legal gaps may lead to systemic financial risks. Therefore, the "regulatory sandbox" is a very important regulatory concept that seeks the best balance between regulation and innovation.

The so-called regulatory sandbox has the advantages of being able to balance encouraging innovation and preventing risks, highlighting the protection of financial consumer rights, attaching importance to information feedback mechanisms, and adjusting rules in a timely manner.

Some people in the industry have analyzed to reporters that Hainan is expected to carry out related research on blockchain and digital asset technology through a regulatory sandbox model. In addition, whether the "offshore digital asset trading laboratory" mentioned can represent a blockchain company that will likely obtain a domestic offshore zone license in the future and carry out research on compliant and legal blockchain and digital assets in the Sanya area. There is also room for discussion in work. The Hainan International Offshore Innovation and Entrepreneurship (Sanya) Experimental Zone was officially unveiled, and it is the first listed experimental zone in Hainan Province since the establishment of the International Offshore Innovation and Entrepreneurship Demonstration Zone. The first group of companies settled in Europe and other companies signed a strategic cooperation agreement with Sanya to accelerate the development of blockchain technology and industrial innovation.

The founder of Eurotech Group Xu Mingxing understood the typical application of the blockchain as: "Blockchain is divided into instrumental applications and subversive applications. Instrumental applications will gradually be applied by governments and enterprises in many years, such as in government In terms of law and law, China ’s justice has recognized the effect of blockchain evidence. Libra, launched by Facebook, is a typical example of disruptive applications. Banks in many countries are using blockchain technology to build electronic money. Such electronic money can be like Paper money is a point-to-point transaction and can be tracked at the same time, so it is an electronic cash. Instead of having to go to a bank to open an account with each device, the blockchain may become the underlying system of electronic devices. "

Li Xiaofeng, former director of the Institute of Financial Information Technology of the People's Bank of China, said

"From the perspective of the bank, its business is divided into three categories: debt business, asset business, and intermediate business. The scenarios selected from the blockchain application are mainly intermediate business. The bank's blockchain application is used in trade finance and supply chain and digital Bills account for more than 50%, and the next application direction of blockchain is undoubtedly assets from a business perspective. "

Li Xiaofeng added that from the perspective of the technology department, the blockchain must be rubbed into different cities, and it must also be connected with the Paas and Saas platforms, and the bank must be involved in the management and development of the entire business cycle. At the same time, manageability is reflected in the requirements of the bank's technology department on the blockchain. At present, the most important application of the blockchain is cross-border payment. One of the three methods is digital currency, messaging system, and financial service.

We will continue to update Blocking; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

Market

Hungary introduces bill for banks to offer crypto services.

Under the new proposed legislation, the Central Bank of Hungary, Magyar Nemzeti Bank (MNB), will play a crucial role ...

Blockchain

Ripple and RocketFuel: The Dynamic Duo

Exciting News Ripple Labs and RocketFuel Team Up to Transform Cross-Border Finances!

Bitcoin

The BTC Acquisition Frenzy: MicroStrategy Continues to Bet Big on Bitcoin 🚀

MicroStrategy is proudly maintaining its status as one of the leading corporate holders of Bitcoin (BTC), solidifying...

Blockchain

Crypto Showdown: SEC vs Ripple - The Battle of the Tokens

The cryptocurrency community is abuzz with anticipation for a potential settlement in the Ripple case, as the SEC pre...

Blockchain

Pepe: The Next Dogecoin, According To Michael Van de Poppe

Get ready, Fashionista – Pepe, Illuvium, and Meme Moguls are projected to experience a boost in prices in the upcomin...

Market

TWT Token Skyrockets as it Rides the Binance Futures Wave

Fashionista, the price of Trust Wallet Token (TWT) has experienced a significant increase of 18% in just one week, ma...