Chinese Tescent will spend 500 billion of yuan on FinTech development in China seeking to accelerate the blockchain development in competition with the USA.
Strengthening of PRC positions in the “Digital economic war” The Chinese technical giant Tencent Holdings, owner of the Chinese messaging platform WeChat, announced that the company would put $70 billion in the future 5 years into the development of new technologies including blockchain, Artificial Intelligence, cloud computing and cyber security. National Development and Reformation Commission (NDRC) of China has discussed the new standards for technologies including the call for structural economic renewal. Fan Yifei, the Deputy Governor of Public Bank of China, has reiterated the appeal of the president Xi Jinping to speed up the integration of blockchain. President also noted that it was necessary to strengthen the fundamental researches of blockchain technology and stimulate innovations what enabled China to occupy the leading positions in blockchain development. Government has formed the National Committee for developing industrial standards.
Ministry of industry and information (MIIT) published a document on April, 13, entitled “Public notice of forming a National Technical Committee for blockchain standardization and the distributed ledger technology research” The Committee was composed of managers of the famous Chinese institutions including Baidu, Tencent, Huawei, University of Beijing, University of Tsinghua and Fudan University.
The Ministry also asks for public comments on the members of Committee.” Development of the “Digital Central Bank”” People’s bank of China (PBC) plans to consider the question of establishing digital infrastructure for central bank in order to improve the standards of financial services within the country. The three-year FinTech development strategy was developed in August, 2019, and now it’s the second year of its fulfillment. It is expected that the development of blockchain, Internet of Things, large data systems and other innovation business models will contribute to transformation of financial industry and the promotion of the financial technologies.
Digital yuan is a leader China has also initiated an ambitious step to “maintain the leading positions in the field of digital currencies”, as this is the main concept being researched by central bank. According to the Zhongtai Securities report, People’s Bank of China aims to become the world leader in digital money development as it strives for effective researches and development, and for digital asset’s technical testings. China is leading in the new competition as the country has been working at “digital yuan” for a few years already, and this is one of the most important fields when it comes to digital war.
Digital yuan will become the first sovereign asset”, believes India Times.” Chinese digital yuan will be issued as a direct competitor to dollar, and since the USA give no response China may take the lead. The recent World Economic Forum report said that the global pandemic enables the USA to consider new solutions such as free access to basic Internet. This access will ensure financial stability while the crypto industry is amidst the new stage of economic war.