China to look into foreign exchange reforms to deal with cryptocurrencies: SAFE

The government of China is planning to undertake a study on foreign exchange reforms in order to deal with cryptocurrencies, an official at the country’s foreign exchange regulator was quoted saying by Reuters.

Speaking at a forum in Beijing, Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE) – an administrative agency under the State Council, revealed the government’s plans with blockchain technology, fintech, and foreign exchange regulation.

“We will gradually expand the scope of the pilot and the application scenarios of blockchain technology in cross-border financing and macro prudential management,” Lu said.

“At the same time, (the government) will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency and explore the construction of the foreign exchange regulation and technology system under the new situation.”

Last month, SAFE expanded its blockchain-based cross-border financing pilot program to cover 19 provinces and cities. The program was launched in March this year in 9 provinces and cities and is aimed at companies engaged in cross-border business, providing them with accounts receivable financing services for exports and information verification services.

The expansion of the pilot program followed the endorsement of blockchain technology by Chinese President Xi Jinping. The CCP (Chinese Communist Party) leader urged agencies to implement this innovative technology to streamline and enhance their operations.

Lei said that the platform is currently the only one registered by a central state agency with the Cyberspace Administration of China (CAC).

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