China is planning on leveraging blockchain technology to digitize its securities industry. Representatives from the country’s largest stock exchanges and regulatory bodies held a meeting to discuss the future of the securities industry and the role of blockchain tech. The event was organized by the China Securities Association (SAC) and brought together securities regulators, including the China Securities Regulatory Commission (CSRC). China has been promoting the use of blockchain tech for many years now.
Stock exchanges delve into how they are using blockchain technology to increase efficiency.
Two of the largest stock exchanges in Shanghai and Shenzhen, who were also present at the event, delved into how they are using blockchain technology to increase efficiency, reduce costs and increase transparency. Jiang Dongxing, the deputy director of the Science and Technology Regulatory Bureau of CSRC, called on market participants to double down on their blockchain initiatives, citing benefits such as the building of a trust mechanism that could be the foundation upon which the future of China’s securities and futures industry is built.
Blockchain will play a key role in the securities industry.
The deputy director mentioned that in its 14th Five Year Plan, the CSRC made it clear it would step up its efforts to build “an industry cloud platform, certificate network, industry big data warehouse and industry blockchain public infrastructure.” He told the attendees, “The core function of the blockchain is to establish a trust mechanism in the network environment, and it will be a key information infrastructure for the co-governance of the securities and futures industry in the digital space after [it’s] fully digitized.” Jiang further called on the securities industry to collaborate on the blockchain ventures. This is the best and fastest way to create a “hierarchical, unified, interconnected, safe and reliable industry blockchain public infrastructure,” he added.