Blockchain can be understood as a decentralized or distributed database or ledger. Blockchain has become a global innovation that attracted the attention of various industries as it could help to significantly cutting costs and boosting efficiency, speed up transactions while lowering the risk of fraud and cutting the overall risk in the financial system.

But what is worrying is that due to the state-owned systems, the financial institutions in China are lacking the sense of danger and urgency and generally, there is insufficient emphasis on the blockchain technology and digital currency.

We are of the view that the in order to have greater say in blockchain technology, Chinese financial institutions should seize this strategic opportunity to actively participate in the development of relevant technologies and regulations.

If China does not act now, then we will have to pay heavy price in the future while stuck in a passive position in the international financial markets.