China Established A Fintech Product Certification Authority
People’s Bank of China has announced the creation of a new regulatory body. The latter is entrusted with the certification of fintech products.
China plans to certify 11 types of hardware and software for financial technologies that are used for digital payments and blockchain services. All products will be presented to specialists of the system, called Certification of Fintech Products (CFP).
According to users on the network, the changes indicate that soon the physical yuan will give way to its digital equivalent.
As we know the list of hardware and software will include a complete list of products: from mobile terminals to user interfaces. According to representatives of the bank, the issued certificates will be reviewed and updated every three years.
Manufacturing companies will be allowed to submit information on CFP approval to the packaging and to the product itself. At the same time, regulatory authorities decided that certification cannot be used for the direct promotion of a product or its advertising.
The People’s Bank of China has just launched digital payment certification of Fintech Products System. The days of physical yuan are coming to an end.
— Plaid Yi Gang (@Plaid_Yi) October 30, 2019
China's Blockchain Policy
The creation of a new regulatory body took place against the backdrop of the desire of the Chinese leader to capitalize on the capabilities of the blockchain. Recall that President Xi Jinping announced his intentions to technology for the development of the country a few days earlier.
The cryptography law adopted after a short period after the statements by the head of China will contribute to the implementation of the plan. Note, that against the backdrop of China's choice of developing a blockchain direction, an active increase in prices was recorded in the digital asset market.
China is currently developing its own digital cryptocurrency. If ahead of the last launch of the Libra stablecoin, according to Facebook CEO, it is China that will be able to access 1.7 billion users who previously had no banking services. The social network cryptocurrency development team considers working with the designated segment of people as one of the key goals of its project. In particular, this idea is reflected in the Libra video presentation.