Blockchain Use in Finance Still Faces Major Challenges: Chinese Researcher

Published at: April 12, 2019

The use of blockchain technology in the financial sector still face many challenges according to a major Chinese researcher, local news agency Sohu reports on April 12.

Wei Kai, head of blockchain research at the China Academy of Information and Communications Technology (CAICT), described roadblocks to the technology's further adoption at a 2019 meeting of the International Chamber of Commerce (ICC) Banking Commission.

According to Wei, despite blockchain’s potential to transform a number of industries, tech disruptors have not solved three major problems in regard to the financial sector at the current stage of blockchain adoption. The researcher argued that the blockchain community has yet to work out such problems as data privacy, operability, as well as blockchain’s ability to be integrated with enterprise systems.

Kai also noted other important issues such as coordinating regulatory approaches between different jurisdictions worldwide.

With that, the blockchain expert still noted that blockchain tech has the potential to transform the banking industry, as well as to bring benefits to other industries such as manufacturing, transportation, medicine, government, and others.

Established in 1957, the CAICT research center operates under the Chinese Ministry of Industry and Information Technology.

Recently, Big Four auditing firm KPMG published a survey showing that most finance and tax executives do not consider using blockchain technology, with 67% of respondents claiming that they were not using the technology at the time of the poll.

On April 9, the developer of community website StackOverflow found that 80% out of 90,000 developers worldwide are currently not using blockchain technology.

Tags
Adoption
Blockchain
China
Cryptocurrencies
Government
Finance
Related Posts
Blockchain as an Infrastructure: A Deep Dive Into China’s DLT Strategy
There is an old saying in China: “Building the road is the first step to becoming rich.” Asian countries use infrastructure to boost the economy, and China is probably the most aggressive one — its annual average infrastructure spending is one of the highest at 8.3% of its gross domestic product from 2010 to 2015, according to data from Statista. In the last two decades, China has built the most highways and high-speed railways, and it has now decided to extend the infrastructure development to a digital dimension. China’s “new infrastructure” plan includes blockchain technology, 5G, artificial intelligence and cloud …
Adoption / June 23, 2020
Argentina’s Dep. Finance Minister: Crypto Adoption Could Reduce Demand for US Dollar
Huobi Group CEO Leon Li met with senior Argentinian finance officials this week to discuss the role of blockchain and crypto in the country’s economy, according to a press release shared with Cointelegraph on March 29. In a meeting in Beijing, Argentina’s Deputy Minister of Finance, Felix Martin Soto, claimed that the government should address crypto and blockchain tech as a way to promote Argentina’s financial inclusion and reduce state costs. Soto, who leads Argentina’s international financial relations, explained that half of the country’s population does not have bank accounts and operate cash transactions by converting their savings to United …
Adoption / March 29, 2019
South Korea’s Finance Ministry Considers Taxing Crypto and ICOs, New Minister Reveals
South Korea's Finance Ministry is considering taxation on cryptocurrencies and Initial Coin Offerings (ICOs), daily English-language newspaper The Korea Times reports Monday, Dec. 3. Hong Nam-ki, South Korea’s new Minister of Economy and Finance as well as new Deputy Prime Minister, revealed that а crypto taxation plan will be finalized according to global taxation trends in the industry. Pointing to the current ICO ban in South Korea, the deputy prime minister stated that the authorities will also form a new stance to the crypto industry, based on careful consideration of “market conditions, international trends and investor protection issues.” In his …
Adoption / Dec. 3, 2018
What is the global financial crisis and its impact on the global economy
When the financial system or the economy as a whole undergoes a rapid and large decline, it is said to be in a financial crisis. Financial assets like stocks, bonds, and real estate often see a sharp and significant decline in value during financial crises. They can also be identified by a decline in credit availability and a loss of faith in financial institutions like banks. Related: DeFi vs. CeFi: Comparing decentralized to centralized finance Financial crises can be caused by a variety of factors, including: Overleveraging: When people, businesses, and governments take on excessive debt, they put themselves at …
Adoption / Feb. 5, 2023
US lagging on CBDCs could spell ‘trouble’ — Crypto Council policy head
A cryptocurrency researcher and former CIA analyst believes the United States government’s relatively slow start on Central Bank Digital Currency (CBDC) development may result in it losing grip on controlling the global financial system. Yaya Fanusie, the policy head at the crypto advocacy group the Crypto Council for Innovation explained in a Feb. 28 Bloomberg interview that sanctioned states are looking to transact on financial infrastructure that isn’t controlled or heavily influenced by the U.S. in order to move funds more freely cross-borders. If the U.S. continues to sit on the “sidelines” and lag behind on CBDC adoption, Fanusie believes …
Adoption / March 1, 2023