China: WeiyangX Fintech Review

Shanghai Information Security Evaluation and Certification Center is Working on the Establishment of Blockchain Technical Security Standards

According to a report called “Safety issues under the rapid development of the “blockchain +” industry”, blockchain security problems in 2018 have caused $2 billion in asset losses in China. From 2011 to 2018, the cumulative loss of security incidents related to smart contracts was $1.409 billion, the loss of trading platform security incidents was $1.345 billion, and the loss of ordinary users’ security incidents was $437 million. It can be seen that the loss caused by security problems is huge and cannot be ignored.

Therefore, the Shanghai Information Security Evaluation and Certification Center is working on the development of blockchain technology security standards.

The blockchain industry in Shanghai is developing rapidly. According to China News Network, Shanghai released the first “White Paper on Blockchain Technology and Application” on September 6. According to the document, by the end of March 2018, there are 456 blockchain enterprises in China, among which 95 are in Shanghai. Besides, Shanghai has attracted 73 blockchain related financing events. (Source: Odaily)

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Tsinghua Launches a Campus Version of Digital Currency Wallet

Recently, the Department of Computer Science and Technology of Tsinghua University, Arxan Fintech Co., Ltd. and China UnionPay jointly released a digital version of campus wallet, which made it the first legal digital currency application test in China. The function of the wallet is relatively simple, and only the wallet balance, payment, and binding bank card can be displayed. If you are very familiar with the use of Alipay and WeChat payment, there is no additional learning cost to use this digital currency wallet.

The service agreement makes a clear definition of digital currency: digital currency is “the digital embodiment of money, a form of cash, and the permanent anchor of the renminbi is 1:1.

Therefore, the funds transferred in or out of the digital currency wallet is equivalent to the balance change of binding bank account. It seems that for the user, the digital currency characteristics of the balance in the wallet are not that obvious. In addition, it will take T+1 day for the funds transferred in or out the digital wallet. (Source: 01Binary)

Tsinghua University launched the first legal digital currency application test in China Click to Tweet

JD Finance: from Fintech to Techfin?

On September 17th, JD Finance changed its username on multiple social media (e.g. Sina Weibo) to “JD Digital Technology”. A spokesman from JD told the media that they believe the new name can better reflect the company positioning. 

Previously, in the Boao Forum for Asia (2018), Shengqiang Chen, CEO of JD Finance said that in the future, JD Finance will transfer from a financial product provider to a technology platform. In other words, financial institutions will be the only financial service and product providers and operators. The so-called B2B2C model is to serve the B-side financial institutions, and ultimately achieve the goal of improving the C-end user experience of financial institutions. (Source: 01Caijing)

Will the PBOC launch its own digital currency?

On September 18, the Shanghai Headquarter of the People’s Bank of China said that in recent years, speculation related to virtual currency has prevailed, prices have skyrocketed, risks have accumulated rapidly, and economic, financial and social order have been seriously disrupted. ICOs, which are essentially an unauthorized illegal public financing, are suspected of being involved in illegally selling tokens, illegally issuing securities, financial fraud, pyramid schemes and other illegal and criminal activities.

Therefore, PBOC calls on consumers and investors to raise their awareness of risk prevention and report suspicious ICO variants and events to the public security organ.

While the central bank is cracking down on “virtual currency”, it is also actively developing its own digital currency. Then, there has been an array of speculation that what the central bank has done is probably paving the way for the launch of the legal digital currency. (Source: 36Kr)

While the central bank is cracking down on “virtual currency”, it is also actively developing its own digital currency #China Click to Tweet

WeiyangX is the most influential website focusing on Fintech in China. The site covers the latest news, industry data analysis, business practices, and in-depth fintech cases in fintech. WeiyangX is incubated by Fintech Lab. Founded by Tsinghua University’s People’s Bank of China (PBC) School of Finance in 2012, the Fintech Lab is the first and leading research entity dedicated to leading best practices, promoting interdisciplinary innovation, and encouraging entrepreneurship in the field of fintech through scientific research and innovative project incubation.

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