Home > News > Industry News > Blockchain technology heats up.....

News

Blockchain technology heats up after Beijing's backing as driver of growth

  • Author:Linki
  • Source:https://www.chinadaily.com.cn
  • Release on :2019-10-29
Blockchain technology heats up after Beijing's backing as driver of growth


The financial sector has jumped to embrace blockchain, a controversial technology that became a hot topic over the weekend after the Chinese leadership decided to strengthen investment in the area.

Animated discussions broke out on social media between regulators, professionals and experts in the financial industry about the development in China of blockchain, a digital ledger system that uses sophisticated cryptographic techniques to create a permanent, unchangeable and transparent record of exchanges to trace transactions.

The stock prices of companies involved in blockchain soared on Monday-93 blockchain stocks reached the daily trading up limit of 10 percent, including Zhejiang Huamei Holding Co and Julong Co. The Shenzhen Information Technology Index rose 5.3 percent on Monday, the largest rise in about eight months.

The new technology has been identified as a key driving force for economic growth-the first time it has been endorsed by the country's top decision-makers.

Xi Jinping, general secretary of the Communist Party of China Central Committee, urged on Thursday that more efforts be made to quicken development of blockchain technology, highlighting its important role in the new round of technological innovation and industrial transformation.

He said deep integration of blockchain with the real economy should be promoted to solve problems such as financing difficulties for small and medium-sized enterprises, risk management in banking and government agency supervision.

Commercial banks should pay special attention to the application of blockchain in their digitalization to develop applications and strengthen innovation, said Li Wei, director of the technology department of the People's Bank of China, the central bank, at a financial forum on Monday.

The nation's foreign exchange regulator is also studying the use of blockchain and artificial intelligence to enhance cross-border trade financing, as well as preventing capital flow risks, Lu Lei, deputy head of the State Administration of Foreign Exchange, said on Sunday.

"We should pay special attention to the quick development of digital finance and financial technology," Lu said.

Since its inception more than a decade ago, blockchain has brought a mix of hopes and fears to investors, experts and policymakers across the world.

The technology creates a system of records and processes transactions via a distributed network. It underpins applications from cryptocurrencies like bitcoin to crossborder payments and credit information recording systems.

点击这里给我发消息