The instruction paper demands the implementation of secure financial ledger technology (DLT) system, including cryptographic algorithms, ledger data, consensus protocols, smart contracts, identity management, privacy protection, regulatory support, operational and maintenance requirements, and governance mechanisms. Organizations engaged in the development of blockchain systems for the financial sector as well as various service providers that are using DLT-based solutions are expected to comply with the standards in their activities. The release of the document will promote the development of central bank digital currency and blockchain supply chain finance. Some contents in the document have been reported by many media such as Netease News, China Business, and Hexun. With the new regulation, the central government puts an emphasis on improving information security of DLT applications. This is another good policy since the authority stated the importance of developing blockchain in October 2019. Meanwhile, central banks of many countries have also released positive attitudes towards financial blockchain technology.
In fact, at the beginning of February, many central banks are more open to the idea of blockchain. On February 5, U.S. Federal Reserve officials stated that they are focusing on the feasibility of launching a digital currency based on blockchain solutions. On February 12, Powell confirmed to the Congress that the Fed was working intensively to develop a digital currency.
In just a few days, the Federal Reserve has expressed its more open attitude towards the central bank's digital currency more than once, which also means that the possibility of the Federal Reserve issuing "central bank encrypted digital currency" is gradually increasing.
On February 20, the Bank of Sweden will begin to test its digital currency e-Krona. It is reported that the Bank of Sweden has begun to deploy the e-Krona program as early as 2017 to cope with the sharp decline in the use of cash in recent years.
In addition to the United States, Sweden, Canada, Japan, the United Kingdom, and the Netherlands have also issued related blockchain policies to express openness towards the development of digital currency based on blockchain technology since the end of last year.
Digitalization is the base for the blockchain applications. Since the financial sphere has a high degree of digitization as well as numerous centralized models, the blockchain technology has the most abundant application in financial sector.
It is estimated that blockchain solution can save the cost of 5-7 billion US dollars in the financial sector each year. The main application of blockchain in the financial field include digital currencies, cross-border payment, data bills, supply chain finance, trade financing, etc.
With the innovation and development of blockchain technology , reinforce the research on blockchain standard and gain the power to formulate rules are strategically important for countries to seize the sphere development.
Although the research of China's blockchain standards is still at a basic level, the authority attaches great importance to it, and is turning to develop national blockchain solutions to promote a standard system with top-level design.
The first blockchain security standards in the financial sphere will promote the sustainable development of the blockchain technology. It is expected that blockchain applications in the financial sector will accelerate in the future.
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