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The people's Bank of China has introduced standards for financial applications on the blockchain

The people’s Bank of China has introduced standards for financial applications on the blockchain

According to local media, the people’s Bank of China (PBOC) has introduced standards that should be met by financial applications based on blockchain.

The Central Bank of China said that if financial institutions develop applications using blockchain, they must meet three standards related to technical parameters, performance and security. Now applications will be evaluated based on various criteria: bandwidth, software and hardware functionality, as well as the level of personal data protection. Smart contract support will also be checked.

The NBK believes that by complying with the established standards, financial organizations will be able to create high-level applications. These rules will apply to banks, brokers, asset management companies, payment operators, and other financial organizations. To date, there are more than 70 institutions in China that implement blockchain-based applications. They also include state-owned banks and technology giants.

The Committee that develops state standards for the use of blockchain was formed by the Chinese government in November. The Committee has 71 members, including search giant Baidu and Tencent Corporation. Earlier, Vice President of the People’s Bank of China (PBOC) Yifei Fan (Yifei Fan) said that the financial industry in China needs to update existing standards to provide clarity for the qualitative development of the industry. Chinese authorities began considering creating national standards to encourage the development of blockchain and distributed Ledger technology (DLT) in the spring of 2018.

Recall that last fall, the Chinese government began to explore the possibilities of blockchain and artificial intelligence (AI)for international Finance and risk management.