China’s Central Bank Issues Standard for Blockchain to Promote its Financial Application
Recently, China’s central bank issued the financial industry standard on promoting the application of blockchain technology and the Rules for the Evaluation of the Financial Application of Blockchain Technology, requiring all kinds of financial institutions to regularly carry out external security assessment and record the application of blockchain technology.
The standard issued by China’s central bank is the first relatively complete technical standard and evaluation method for the blockchain system and products from the Supreme authority in China. It provides a complete set of evaluation criteria from the perspective of top-level design, which is of great significance for the healthy development of the future blockchain industry in China.
The document gives the definition of blockchain, and from the evaluation of technical elements, performance, to security, it puts forward three dimensions that need to be considered in the application and implementation of blockchain in the financial field and gives specific technical indicators, evaluation methods and standards for product design, software development, and system operation.
At the same time, the central bank requires financial institutions to carry out the filing work of blockchain application technology in accordance with relevant regulations.
No mention of the concepts of “decentralization” and “tokens”
The central bank gives the definition of blockchain, that is, it is a technology that can be maintained jointly by many parties, use cryptography to ensure the security of transmission and access, and can achieve data consistency, anti-tampering, and anti-repudiation. This is the first time that China’s central bank has stated in public what a blockchain is.
However, some frequently-referred concepts that in blockchain discussions do not appear here, such as “decentralization” and “token”. Maybe it will provide important guidance for the healthy development of the blockchain industry.
In terms of technical factors assessment, it covers 10 aspects, namely, account technology, consensus protocols, smart contract, node communication. In terms of performance, specific requirements are put forward in terms of throughput and synchronization.
For a long time, China’s central bank adheres to two principles of financial innovation: one is to meet the existing laws and regulations, which includes the situation that effective supervision cannot be carried out; the other is the protection of financial consumers, and “zero tolerance” to all behaviors that damage the interests of consumers.