China has introduced a new body that will be responsible for regulating digital payments, blockchain products and fintech services.
In a follow up to what is seen as a follow up to the Chinese blockchain technology buildup, the People’s Bank of China has introduced a regulatory unit under the auspices of the central bank to regulate digital payments, blockchain products and fintech services that center around decentralized finance within the country.
Sources indicate that under the new agency, a new system has been put in place to certify about 11 different categories of financial products which are both hard and soft. This covers the gamut of a broad range of fintech products.
The first list of products that are used on both the front end and back end have been released based on a filing on the Central Bank’s website released earlier this week. The Central Bank is also reportedly working towards developing its national currency which will have more than the usual security features that a typical cryptocurrency token has. Moreover, the bank is trying to encourage commercial banks to implement blockchain tech as well.
On the current list, 11 products have met the criteria for the certification referred to as the “Certification of Fintech Product (CFP)” which is renewable every three years. The recipients of the certification protocol must also pass the rigorous checks and inspections which include physical site checks and insection of codes, algorithms, onchain performance among other things.
In terms of compliance, random checks will also ensure to keep the quality assurance of the new system. Referred to by the Peoples’ Bank of China as a “management system based on standards leadership, corporate responsibility, and government supervision,”.
The Chinese Have Been Working Quietly
While the rest of the world have been arguing among themselves on what exactly to do with blockchain technology, the Chinese have been studying it and figuring out uses for the new world of decentralized finance (defi). The new regulatory framework had been thought of and approved earlier this year apparently in August when the rest of the world had been excited by private innovations within the blockchain space.
The implications of this new development at the Chinese Central Bank are deeper than most people think. Firstly, this will mean that the Chinese alongside a select few countries have developed a blockchain-friendly environment that will allow for the growth and development of what is going to be the next level of evolution of the internet.
Secondly, when a country that has the second-fastest growing economy and a quarter of the world’s population decides to go hard on blockchain technology it indicates that the adoption of blockchain technology is already a given. This also shows that the Chinese are more forward-thinking than many people realize. It is time that everyone else understands this and that they all move towards a blockchain-driven world.
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