China launches FX blockchain & AI study
(28 October 2019 – China) China is studying the application of blockchain and artificial intelligence (AI) in cross border financing with a focus on risk management.
The country has also committed to further liberalisation of its capital markets. China's parliament passed a new law on cryptography this week as the country prepares to launch its own digital currency.
The announcement comes amid a strong backlash to Facebook’s digital Libra currency globally. Facebook's digital currency ambition is causing alarm among central banks around the world amid concerns over its threat to the global monetary system and implications to data privacy and money laundering activities.
China’s State Administration of Foreign Exchange (SAFE) is promoting the application of financial technology and AI in cross border trade finance, as well as in macro prudential management. China also plans to reduce red tape in an outbound investment scheme in Shanghai called the ‘Qualified Domestic Limited Partnership scheme’, designed to allow foreign asset managers to raise money locally for overseas investment while also studying the rollout of Yuan (CNY) interest rate options
"We need to pay special attention to the rapid development of digital finance and fintech. When we are not entirely certain where a new form of business is heading, we must pay attention to risk management" stated Deputy SAFE Head, Lu Lei.