China expands the application of its state-authorized blockchain platform

China strives to create tighter links between fintech industry and financial markets. The country will be expanding the application of its blockchain-based cross-border financing platform to cover the foreign exchange market and macro-prudential management. 

According to Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE), the government will strengthen the technology integration with the financial ecosystem, and continue to supervise its development.

We will gradually expand the scope of the pilot and the application scenarios of blockchain technology in cross-border financing and macro-prudential management. At the same time, (the government) will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency and explore the construction of the foreign exchange regulation and technology system under the new situation.

The SAFE’s cross-border financing blockchain platform was launched in March as a pilot project in 19 provinces and cities, it is the only blockchain platform registered by a central state agency at the Cyberspace Administration of China (CAC).

Chinese blockchain initiatives came into focus earlier this year when Chinese President Xi Jinping said China should become a pioneer in the development of blockchain technology.