Selena Ramirez
The existing banking and insurance regulator will be substituted by the new administration, which is part of a larger government restructuring.
The Chinese government has announced that it intends to implement a major restructuring, introducing a new national financial regulator in the process.
It was declared on Tuesday, March 7 that the China Banking and Insurance Regulatory Commission (CBIRC), which is the government's current banking and insurance monitor, will be discontinued.
The duties of this commission will be transferred to a completely new management, along with certain tasks of the central bank and securities regulator. On Friday, March 10, the lawmakers will decide on a proposal for institutional change.
Once implemented, the new financial regulator is expected to enhance the management of institutions, manage behaviors, and uphold its functions, as indicated in the plan.
The People's Bank of China (PBOC), the China Banking and Insurance Regulatory Commission (CBIRC), and China Securities Regulatory Commission are all tasked with monitoring the financial sector in China at the moment.
The declaration is a response to Chinese President Xi Jinping's request for changes to the nation's political and governmental structures. These alterations will incorporate the establishment of a division dedicated to exchanging and enhancing information resources, taking over some of the responsibilities of the present Central Cyberspace Affairs Commission Office.
Even though the Chinese government declared new strategies for the financial sector, there was no indication of changes to the cryptocurrency sector. Nonetheless, in February, a former authority connected to the People's Bank of China asked the leadership in Beijing to look into reversing the rigid restriction on cryptocurrency.
China prohibited almost all cryptocurrency transactions in 2021, but despite this, the Chinese government has allocated millions of dollars towards the development of its own digital currency, known as the digital yuan, which will be controlled by the central bank.
The latest development concerning the digital yuan project includes the introduction of fresh smart contract abilities and various purposes, for example, using it to buy securities and making offline payments.
China declared the establishment of a state-backed body called the National Blockchain Technology Innovation Center on February 8th as a means of quickening the advancement of their industry using blockchain technology.