China focuses on risk management to explore the use of Blockchain and artificial intelligence in cross-border financing. Lu Lei, one of the officials of China’s State Administration of Foreign Exchange (SAFE), mentioned that China is considering using Blockchain technology in the foreign exchange market as part of the new Blockchain project.
New moves from China after first crypto law and Blockchain implementation
Lu Lei, a Chinese currency manager commented that Facebook’s Libra project has increased global interest in the cryptocurrency sector. Amid discussions about Libra around the world, Lu Lei said that SAFE encourages the use of financial technology and artificial intelligence in cross-border trade finance and macroprudential management. Lu Lei said’
“We must pay special attention to the rapid movement of digital finance and technology. If we are not entirely sure where the business is going, we need to pay attention to risk management.”
Facebook’s passion for digital currency is alarming the central banks worldwide because of threats to the global monetary system and the impact it has on data privacy and money laundering activities. On Saturday, the Chinese parliament passed a new cryptocurrency law, and the country is preparing to launch its digital currency.
China intends to use Blockchain technology in foreign exchange market
Lu Lei said that the basis for risk management is the establishment of an effective financial infrastructure that recommends that Shanghai, the financial center of China, adopt digital technology while strengthening payment and settlement systems. He also pledged to further expand capital markets, including China’s bond markets, with plans to consolidate investment channels for foreign investors.
China, a foreign investment program in Shanghai, said that they plan to reduce bureaucracy. Lu Lei added that the institution is investigating the possibility of bringing interest rates to the RMB. China removes barriers to foreign companies seeking to do business in the country and increases their financial capabilities in the context of a violent trade war with the US