The People’s Bank of China, the central bank of China, is going to certify eleven types of financial technology software and hardware. They are to be widely used for blockchain services and digital payments. This is possible through the brand new Certification of Fintech Products.
It was the central bank that released the list of the very first fintech products that will be used in both back-end and front-end development. This applies to digital payment services.
The brand new regulatory system arrives as China accelerates a new financial infrastructure development. This does include a currency digital version and President Xi Jinping’s push to capitalize on the development of blockchain technology.
China’s central bank believes the digital currency is going to boost the entire industry. It touted the security features of the coin and the off-line transaction ability, thinking that is superior to the commercial products that are offered by WeChat Pay and Alipay.
The list of the central bank now includes 11 fintech products. The certification system in place covers products that can be involved in different digital payment technologies. This includes embedded application software, point-of-sale mobile terminals, security carriers, chips and front-end software.
The People’s Bank of China grants applicants a CFP (Certification of Fintech Product). This is available when products pass an initial examination, together with on-site checks. The certificate is going to be renewed and reviewed every 3 years.
The related authorities can conduct random inspections in order to guarantee compliance as the certificate is valid. However, this certification will not be directly used to promote products.
An item that is specifically interesting on the 11 products list is TEE (trusted execution environment). The technology assists in creating a blockchain network and verifies blockchain transactions. Similar technologies are now being developed by Microsoft as the tech giant filed for 2 patents for something similar last year.