A view of the PBC's headquarters in Beijing Photo: cnsphoto

The People's Bank of China, the country's central bank, has issued documents and evaluation rules regarding the application of blockchain in financial institutions including banks, security companies and insurance firms, according to media reports. It is the first time the top authority has issued regulations for blockchain application.

The documents require financial institutions to evaluate blockchain technology on several fronts including technology, performance and security. Evaluations will judge whether or not the blockchain technological application system can ensure the safe and stable operations of relevant financial infrastructure in an objective and fair manner, the notice read. 

The central bank requires financial institutions to set up and improve risk aversion mechanisms for blockchain application, and to conduct external safety assessments regularly to promote the application of blockchain technology in the financial industry. Financial institutions are also required to complete filing work for blockchain application. 

It also urged industry associations to strengthen management in the application of blockchain technology, and to set up internal mechanisms for self-inspection and information sharing. 

The rules issued by the central bank apply to banks, brokers, fund companies, futures companies, private investment funds, Union Pay and non-bank payment institutions. 

A number of financial institutions including the Agricultural Bank of China and the Industrial and Commercial Bank of China have in the last two years been scaling up efforts to apply blockchain technology to their financial services.  

Global Times