Central Bank Official: Blockchain Application Ideal for Chinese Commercial Banks

Li Wei, the Technology Departmental Head of the People’s Bank of China, has urged Chinese commercial banks to embrace blockchain and digital finance. His sentiments come at a time when decentralized finance (DeFi) has become an emerging trend, whereby decentralized networks are set to transform traditional financial approaches into transparent and trustless protocols. 

According to Reuters, Wei shared these sentiments at a Shanghai forum, and he challenged commercial banks to step up their game when it comes to blockchain application. His viewpoint comes at a time when China's President Xi Jinping has noted that the nation ought to accelerate the development of blockchain technology. 

Xi stipulated that the application of blockchain technology has extended to digital finance, internet of things, intelligent manufacturing, supply chain management, digital asset trading, and other fields. 

Presently, the establishment of blockchain technology is being accelerated in major nations across the world. China has not been an exemption as it has developed a solid foundation in this technological innovation. Nevertheless, collaborative research is necessitated for blockchain to thrive. 

On the other hand, Sun Tianqi, the chief accountant for China’s foreign exchange regulator, has stated that emerging markets ought to take prudent actions against illegitimate cross-border capital flows involving digital currencies. This trend has been instigated by FinTech because of cross-border transactions. 

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