2016 China Financial Innovation Forum focuses on supply-side financial reform - hotly discusses blockchain development

On September 7-8, the "2016 China Financial Innovation Forum - New Thinking on Financial Reform from the Perspective of Supply-Side Reform" jointly organized by CEIBS Lujiazui International Financial Research Institute and Caixin Media was successfully held at the Shanghai Kempinski Hotel. Wu Xiaoling, member of the Standing Committee of the National People's Congress, Vice Chairman of the Finance and Economics Committee, and President of CEIBS Lujiazui International Financial Research Institute, Jiang Jianqing, former Chairman of the Industrial and Commercial Bank of China, Hu Shuli, Editor-in-Chief of Caixin Media, Lu Lei, Director of the Research Department of the People's Bank of China, Cao Yuanzheng, Chairman of BOC International Research Company, Wang Tao, Managing Director of UBS Investment Banking Department, and Wu Jihan, CEO of Bitmain, and other heavyweight guests all attended the forum to discuss the way of financial marketization reform and innovation under the supply-side reform, which attracted dozens of media and 300 financial elites to attend.

How the financial system adapts to supply-side reform

Wu Xiaoling, member of the Standing Committee of the National People's Congress, vice chairman of the Finance and Economics Committee, and president of the China-Europe Lujiazui International Financial Research Institute, called on financial industry practitioners to do their part to promote world harmony and reduce the gap between the rich and the poor, which is an important goal of future financial reforms. The G20 meeting also pointed out the direction for us, emphasizing strengthening financial supervision, improving the international financial governance framework, and developing inclusive finance and green finance. We hope that China's financial supply-side reform can provide advice to the world and China in these areas.

Wu Xiaoling, member of the Standing Committee of the National People's Congress and president of the CEIBS Lujiazui International Financial Research Institute, spoke at the forum

Jiang Jianqing, former chairman of the Industrial and Commercial Bank of China, said that among many challenges, the banking industry is also facing a new cycle of financial data transformation. Financial technology represented by cloud computing, the Internet, mobility, blockchain and artificial intelligence is surging, and is rapidly penetrating and integrating into the financial field, resulting in a new environment and pattern of financing disintermediation and payment disintermediation. In the future, in the field of financing, big data technology and artificial intelligence will enhance the ability to control risks in the process of asset transformation. Credit decision-making is also a game process. It is necessary to go beyond the traditional practice of accumulating experience through practice and mistakes, and use deep neural networks to simulate the mechanism of the human brain to judge and make decisions on credit; Internet finance and blockchain technology will play a role in the payment field and improve the security of payment; VR technology will emerge in areas such as credit on-site investigation, and unstructured image data will provide remote decision makers with a sense of being in the scene; the de-institutionalization and de-manualization of banking business is a slow but irreversible trend. In the future, banks will not be a place, but they will definitely be an indispensable service. Although the world has experienced the painful impact of the international financial crisis, the pace of innovation in the economic and financial fields will be accelerated as a result.

Jiang Jianqing, former chairman of the Industrial and Commercial Bank of China, speaks at the forum

Bitmain explores financial technology

As a global leader in blockchain technology and chip design, the CEO of Bitmain expressed his views on the social responsibilities that private enterprises should bear under the supply-side reform. Wu Jihan proposed that if the supply-side reform can transfer the core growth driver of China's economy from the real estate industry to the technology field with more innovative willingness and adventurous spirit, it will promote the prosperity of the economy more. As a pioneer in Bitcoin, blockchain and artificial intelligence, Bitmain, starting from the micro level, thinks more about how to carry out product innovation, service innovation and technological innovation from the perspective of enhancing the internal competitiveness of the enterprise, so as to play an important role in the global financial technology ecosystem and provide new ideas and new explorations for serving the real and virtual economy and enriching the lives of ordinary people.

Bitmain CEO Jihan Wu speaks at the forum

"In terms of Bitcoin issuance, the world's earliest Bitcoin-specific chips were manufactured and produced in China, and the Antminer produced by Bitmain has the largest global market share; in terms of trading, Chinese exchanges are also leaders in technology and trading volume." Wu Jihan believes that in such emerging fields, Chinese market practitioners are already at the forefront of the world. China has no shortage of talent and capital. If the government can create relaxed conditions for entrepreneurs and cooperate with supervision to control risks, the prospects for the future development of China's economy are still optimistic.

Wu Jihan said that Bitcoin is a digital currency created by a group of people who understand cryptography and advocate a sound monetary policy based on the Internet. Although it does not have the network effect of legal currency, its special properties and mechanisms such as limiting the total issuance provide people with an alternative value storage tool to meet the needs of asset preservation and appreciation under the background of inflation. Blockchain, as the underlying technology of Bitcoin, has been extracted by people and is more widely used in the mainstream economy. Blockchain can promote effective cooperation between equal subjects, mainly solving the "Byzantine General's Problem" and "Double Spending Problem" in digital transactions, and achieving decentralization and trustlessness.

"As blockchain develops, it has differentiated into public chains and private chains. The Bitcoin network is a public chain, and private chains mainly include consortium chains/permissioned chains. Cryptography technology is used to determine the validity of nodes, meeting regulatory requirements such as KYC and AML. At the same time, it is designed based on high-performance servers, with improved transaction performance and customizable solutions. For example, when used in payment, settlement, and clearing systems, it can effectively improve the rate of capital circulation and the efficiency of financial market operations." said Wu Jihan.

Based on the prediction of future development trends, in addition to continuing to make every effort to deepen its roots in the entire Bitcoin industry chain, Bitmain is also focusing on deploying other blockchain application scenarios such as commercial bills, the Internet of Things, etc., while vigorously developing artificial intelligence business lines and making strategic investments in related upstream and downstream companies, in order to stir up the entire ecosystem and dominate the competition in the field of financial technology.

On the first day of the forum, there were heated discussions on topics such as "balance and choice between financial reform and financial risks", "market clearing, rigid payment and deleveraging", and "new financial technology ecology". On the second day, a roundtable dialogue and closed-door meeting on the theme of "blockchain" were held. Zhang Yuan, head of Bitmain's blockchain business, and other guests gave wonderful model presentations and case sharing. The participants agreed that China needs more orderly and reasonable allocation of social resources, more active and stable supervision and risk control, and more open and innovative financial technology development in order to vigorously promote supply-side reforms and promote economic prosperity and development.