China is looking into the application of blockchain and Artificial Intelligence (AI) to cross-border financing, Reuters reports on Oct. 27.
Blockchain in risk management
Lu Lei, the deputy head of the Chinese regulator State Administration of Foreign Exchange (SAFE), reportedly said that there are plans to use blockchain and AI in cross border financing, with particular attention devoted to risk management applications.
Lei noted that SAFE promotes the application of fintech and AI to international finance and macro-prudential management.
His urge to innovate is in line with the remarks of China’s President Xi Jinping, who recently called for the country to accelerate its adoption of blockchain technologies as a core for innovation. Lei also highlighted the importance of managing the risk:
“We need to pay special attention to the rapid development of digital finance and fintech. [...] When we are not entirely certain where a (new) form of business is heading, we must pay attention to risk management.”
More financial opening to come
According to Lei, capable financial infrastructure serves as the basis of risk management. He also promised to open up the Chinese capital markets, including bonds, and consolidate investment channels for foreign investors.
As Cointelegraph reported yesterday, the Standing Committee of the 13th National People's Congress in China has passed a new “crypto law” on Oct. 26 that will go into effect on Jan. 1, 2020.