Chinese central bank, the People’s Bank of China has issued evaluation rules for blockchain-based financial applications. According to the Caixin report, the rules issued by the PBoC require financial institutions building blockchain applications to comply with three standards — technical, performance, and security. The rules would collectively evaluate applications on different aspects such as smart contracts, throughput, software, hardware, and privacy protection, among many others.
The rules would help financial institutions build top-level design of their applications.
According to the local report, the People’s Bank of China’s initiative intends to help financial institutions build top-level design of their applications. The rules issued by the PBoC apply to banks, brokers, asset management companies, and payment firms, among other financial services domains that build blockchain applications. Currently, there are more than 70 Chinese financial services firms, including state-owned banks and tech giants, who are deploying blockchain-based financial applications. China has been dominating the blockchain space. Earlier, the President of China XiJinping had asked the country to take the lead in this field and “seize the opportunity.”
China to become the first major country to issue national digital currency.
The People’s Bank of China has been working on its national digital currency for quite a long time and is now very close to issuing it. The national digital currency of China dubbed as Digital Currency Electronic Payment (DCEP). Several central banks around the world are actively experimenting with central bank digital currencies and are progressing successfully. Earlier, the Bank of International Standards published a report stating that the ongoing global pandemic has forced central banks to accelerate their work with CBDCs. The People’s Bank of China is currently testing its digital currency in four cities.