Central Bank Expands Pilot Program for Fintech Innovation Supervision in 6 Cities (Districts) including Shanghai

In order to thoroughly carry out the pilot work of financial technology innovation supervision, the People’s Bank of China supports the expansion of pilot projects in 6 cities (districts) including Shanghai, Chongqing, Shenzhen, Hebei Xiong’an New District, Hangzhou, and Suzhou, and guides licensed financial institutions, Technology companies apply for innovation tests, and explore the use of modern information technology to empower financial “benefit people and benefit enterprises” under the premise of legal compliance and protection of consumer rights, and strive to improve the level of financial services for the real economy. In December last year, the central bank supported the first pilot of financial technology innovation supervision in Beijing, and selected six innovative applications covering digital finance and other scenarios as the first batch of pilot projects. According to a report in the Beijing Business Daily, people familiar with the matter revealed that the financial supervision sandbox is mainly for some new businesses in the future, emphasizing technological innovation and controllable risks. It is no longer included in the pilot sandbox; in terms of blockchain, it should be viewed separately. If the declared project is a distributed technology solution, it may enter, but if it is a similar project, it is definitely not be adopted.