- Xiao-Gang has released a book that briefly spoke about the challenges and their respective countermeasures that were required to establish a full proof Digital Capital Market in China.
- Xiao was the chairman of the China Securities Regulatory Council from 2013 to 2016.
- He has stressed over the point that China underinvests in information technology services. China needs to expand its digital capabilities in order to have better CBDC.
Recently, Xiao-Gang has released a book that briefly spoke about the challenges and their respective countermeasures that were required to establish a full proof Digital currency Market in China. Xiao was the chairman of the China Securities Regulatory Council from 2013 to 2016. Before this, he has also been the chair of the board of directors of the Bank Of China Ltd and Bank of China (Hong Kong) Ltd. He has also been the deputy governor of the People’s Bank of China. He believes that the conventional regulatory systems needed urgent upgradation because of the changing needs of the market operations.
With New Digital Market, Comes New Challenges
China’s digital market is relatively new, and there are many challenges that the market will face in the coming days ranging from the global race of digital markets, development of digital currency, blockchain technology and finance, internal and external supervision, and so on.
He has stressed over the point that China underinvests in information technology services. Other nations have already developed better digital markets built with world-class digital as well as business strategies. China needs to expand its digital capabilities in order to have better CBDC.
Regulatory Challenges That Needs To Be Looked Upon Closely
Digital Capital Market not only drives the evolution of its applications but most importantly it drives the issuance of digital currency. The coordination between the two of them is very important to bloom digital finance in China.
With the dawn of the digital market and the ever-changing needs of the market, there are certain regulatory challenges that arise. Firstly, the regulatory authorities need to figure out the age-old financial business supervision logic and compile them into executable codes or in other words, ‘smart contracts’.
Greater Investment And Consumer Protection Some Of The Countermeasures
Furthermore, Gang has also enlisted some useful countermeasures to the challenges. As mentioned above, China must invest in digital technologies and promote research in order to catch up with the prevailing digital markets. The research will enable them to closely observe the market and come up with suitable regulatory frameworks and policies. He has also stressed the protection of the users, and improving the management system which will minimize the risk that is associated with the market.