The topic of blockchain in the financial field has been on the rise recently. Recently, the “financial distributed ledger technical security specification” (hereinafter referred to as the “specification”) officially came out, which is called “the first blockchain standard of domestic financial industry”. At the same time, the blockchain research group of the digital currency Research Institute of the people’s Bank of China also wrote articles on the topic of “development and management of blockchain technology”, clarifying the “right and wrong” and “true and false application” of blockchain. During the epidemic period, blockchain technology also played a further role in boosting enterprise financing.

At the same time, people in the industry are also looking forward to the introduction of the central bank’s legal digital currency (DC / EP). The information previously disclosed by the central bank is that the top-level design, standard formulation, functional research and development, joint test and other work of legal digital currency have been basically completed under the premise of adhering to double-layer operation, M0 substitution and controllable anonymity. However, according to the information disclosed by the people’s Bank of China many times before, under the premise of ensuring centralized management and monetary sovereignty, the central bank does not preset the technical route in the process of promoting legal digital currency.

Widely using blockchain Technology

The blockchain research group of the digital currency Institute of the people’s Bank of China recently wrote an article in China finance, pointing out that the blockchain has a wide application prospect in the fields with high requirements for reliable information sharing and low requirements for concurrency, such as transaction settlement, trade finance, property rights transfer, etc.

Why is the landing speed of blockchain in the financial sector accelerated

In fact, in these financial scenarios, many parties, including financial regulators, banks and financial technology companies, have widely used blockchain technology.

The trade finance blockchain platform of the people’s Bank of China, which was launched in September 2018, has successively carried out four businesses: multi-level financing of accounts receivable in supply chain, tax filing form of external payment, rediscount fast track and international trade account supervision. The number of connected banks and enterprises is increasing. The construction of safe’s cross-border financial blockchain service platform is becoming more and more mature. The platform was launched in March 2019. According to the data disclosed by Xuan changneng, deputy director of the foreign exchange administration, since the Spring Festival holiday, the cross-border financial blockchain service platform has made more than $200 million in financing loans.

Jingdong Digital Technology Co., Ltd. launched the first blockchain ABS standardization solution in the market in June 2019 to help asset parties, plan managers, law firms, rating agencies, accounting firms, custody banks and other ABS business participants optimize their business processes and improve the efficiency of ABS issuance business. Compared with the original technical solution, the deployment time can be reduced by 85%, and each business node can save more than one million operation and maintenance costs every year.

It is worth noting that in the process of helping fight against “epidemic” recently, blockchain technology has further played a role in boosting enterprise financing. In early February, Beijing officially launched the credit and debt platform of the supply chain based on the blockchain technology, providing the certificate of account right confirmation based on the blockchain technology, and supporting the small and medium-sized enterprises to launch online financing demand after obtaining the confirmation certificate. In addition, Zhejiang Commercial Bank (4.220, – 0.03, – 0.71%) and other financial institutions have also launched online supply chain financial services, which links the contracts between core enterprises and suppliers in the chain, effectively solves the problem of authenticity of enterprise accounts receivable, thus transforming a large number of accounts receivable that are difficult to activate into blockchain receivables, and realizes online efficient financing.

Standard out of furnace to guide more standardized development of the industry

However, while the application of blockchain accelerates the landing of multiple scenarios, some financial chaos related to it also appears. Industry insiders call for further guidance on the application and development of blockchain in the financial field. At the end of February this year, the “technical security specification for financial distributed ledger”, known as “the first blockchain standard in the domestic financial industry”, was officially released, causing widespread concern.

The standard was officially issued by the people’s Bank of China, and was proposed and drafted by the digital currency Institute of the people’s Bank of China. The drafting agencies also include a number of commercial banks, blockchain research institutions and financial technology companies.

Cao Peng, vice president of Jingdong Digital Technology Co., Ltd., who participated in the drafting of the specification, said in an interview with economic reference news that the standardization work of domestic blockchain began in 2016, for example, the white paper on China’s blockchain technology and application development (2016) proposed China’s blockchain standard system framework; in 2017, China Institute of electronic technology standardization issued the blockchain reference architecture.

“Compared with the previous standards, the specification, published in 2020, is mainly aimed at the financial industry and puts forward higher requirements on user management, regulatory support, privacy protection and other aspects of distributed ledger.” Cao Shengxi, an associate researcher at the International Monetary Research Institute of Renmin University of China, told reporters: “after the launch of the code, financial blockchain has a reference benchmark in the aspects of architecture design, module function, software interface, etc., and this benchmark is in the forefront of the world.”

Cao Peng said that in recent years, the blockchain field has developed rapidly, but the good and the bad are mixed. This time, the central bank combined the distributed accounting technology with the financial field for the first time, and formulated a comprehensive specification, which will become the “basic drawing” for building reliable blockchain technology and application, and urge the blockchain industry to bid farewell to the wild growth and realize more consensus and cooperation foundation. He predicted that under the guidance of industry standards, blockchain will play a better role in finance, insurance and enterprise financing.

“Before the release of the specification, domestic financial blockchain applications grew wildly. Some applications claimed to be based on blockchain, but they were not. Some applications were based on blockchain, but they were not safe in terms of security performance. After the “specification” is released, it can not only exclude the “fake” blockchain projects of the former category, but also regulate the projects that have applied blockchain technology but have security vulnerabilities. ” Cao Shengxi said.

Zhou Sha, CEO of Jingtong technology and co-founder of MOAC blockchain, said that the “specification” led by the central bank has strong business guidance for financial institutions and financial technology companies. In the future, regulatory authorities can also consider launching corresponding product catalogues and lists according to technical standards, so as to further guide the healthy and standardized development of the industry.

There is no preset technical route for legal digital currency

In addition to the launch of the code, the research group of the digital currency Institute of the people’s Bank of China has recently written an article on “development and management of blockchain technology” in China finance. This civilization confirmed the advantages of the unique trust transmission mechanism of blockchain, but also pointed out some shortcomings, and proposed to guide the healthy and orderly development of blockchain industry. According to the article, not all projects need blockchain and not all data need to be chained in order to correctly understand the applicable scenarios of blockchain technology.

Official actions in the field of blockchain attract people’s attention frequently, which also leads to speculation in the industry that the introduction of the central bank’s legal digital currency (DC / EP) may be accelerated. Some believe that the epidemic is also a catalyst for the digital economy to some extent. The central bank’s official account of WeChat public issued in January, “2019| technology in the central bank’s inventory,” pointed out that under the premise of insisting on double deck operation, M0 substitution and controllable anonymity, the top-level design, standard setting, function development and joint test of statutory digital money have basically been completed.

What is the prospect of blockchain landing in the field of payment? Will legal digital currency adopt blockchain technology? The blockchain research group of the digital currency Research Institute of the people’s Bank of China wrote that the blockchain, at the cost of synchronous storage and common calculation of a large number of redundant data, has sacrificed the system processing efficiency and partial privacy of customers, and is not suitable for high concurrency scenarios such as traditional retail payment.

The information disclosed by the central bank People’s position many times before is that under the premise of ensuring centralized management and monetary sovereignty, the central bank does not preset a technical route in the process of promoting legal digital currency, that is to say, it does not necessarily rely on a certain technical route.

At the MIT bitcoin conference held at MIT recently, some experts believed that blockchain technology is not yet the design choice of the central bank’s digital currency. Sonia Davidovich, an economist at the International Monetary Fund, said that although distributed ledger technology can provide a variety of specific functions, including transaction tracking, for the central bank’s digital currency, there are still inadequacies in the protection of user privacy, interoperability with non blockchain systems (such as payment systems) and currency value transfer.

Zhou Sha said that the existing payment method based on public chain is a completely decentralized scheme. Its advantage is that it has a decentralized trust mechanism, but its disadvantages are that the setting is complex, unable to supervise, no offline payment function, slow speed and unable to support transactions of a large number of users. “The completely decentralized model can not meet the central bank’s requirements for the concurrency of retail payment scenarios. However, some improved and hybrid blockchain like approaches may meet the regulatory requirements for centralized management of digital currency and its operation speed, efficiency and security. ” He said.

Zhou Sha said that Jingtong technology is studying a scalable and fast payment scheme based on blockchain, which can not only meet all the important functions of the existing cash, but also more effectively meet the current and future demand for digital currency in the financial field.

Editor in charge: CT

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