China sets to expand blockchain platform to foreign exchange market

China’s deputy head of the State Administration of Foreign Exchange (SAFE), Lu Lei, has revealed that the country will expand the scope of its blockchain cross-border financing pilot platform.

He made this revelation at a forum in Beijing as the expansion will see China expand its blockchain project across the global forex markets.

China, however, is on the verge of launching its digital Renminbi as both blockchain projects have garnered several speculations.

Lei explained that with this advancement, the regulator will strengthen the integration of financial technology and the foreign exchange market.

He mentioned that it would also help maintain a grip on supervising technology development.

China’s major state-run project are Greater Bay Area Trade Finance Blockchain platform in Hong-Kong and the SAFE’s Blockchain-based cross-border financing pilot platform in Macau.

Lei said china will gradually expand the scope of the pilot and the application scenarios of blockchain technology.

Lei on the SAFE cross-border financing blockchain platform said the country is currently the only one registered by a central state agency at the Cyberspace Administration.

China’s cryptocurrency foreign exchange Project

Lei explained that the Chinese government will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency.

The government will also explore the construction of the foreign exchange regulation and technology system under the new situation.

Findings by crypto analyst and common opinion have it that China is currently leading the growth of the blockchain space.

The country’s crypto investors also have a dominating effect on the price owing to the widespread support they enjoy from the Chinese government as crypto retail space is more enticing than in the west.

It must be said that the Chinese have involved in Ponzi scam in 2019 than the West as the validity of blockchain and crypto in China has also increased.

SAFE blockchain platform

The Safe platform has been doing well since its launch as it has already processed 6,370 transactions as of the end of October, including issuing $6.8 billion worth of loans.

The primary aim of the SAFE project is to reduce the reliance on human validation and decreasing the processing time.

After successful implementation locally, the Chinese are now looking to expand their efforts to the foreign exchange markets.

With the outbreak of crypto, these many Chinese efforts and its global expansion, spectators believe that China’s digital Renminbi or crypto will take over USD dominance as the globally accepted currency.

Featured image from: cryptocoinspy