According to a report by Economic Observer on July 13, Xiao Gang, former chairman of the China Securities Regulatory Commission and current member of the National Committee of the Chinese People's Political Consultative Conference, pointed out in his book "The Transformation of China's Capital Market" that the development of digital capital markets can not only effectively expand the application scenarios of digital currency but also lay an important foundation for its issuance. The coordinated development of the two represents a fundamental driving force and significant hallmark of digital finance.
Digital currency is a major trend in the future development of digital finance. It will impact and reshape systems across countries and regions related to currency issuance, circulation, settlement, asset pricing, and asset trading built upon currency. It will also become a key vehicle for national and regional development in the era of the digital economy, as a brand-new financial world takes shape.
Xiao Gang stated that fully leveraging the programmable features of digital currencies can broaden their applications in capital markets. This approach can address longstanding challenges in traditional capital markets—such as difficulties in monitoring fund flows, separation of trading and settlement, and high costs of asset issuance and circulation—while harnessing the advantages of digital capital markets, including transparent and trustworthy assets and automated execution.
In the book, Xiao Gang also emphasized the need to strengthen the coordinated development between digital currencies and digital capital markets, thoroughly assess the impact of digital currencies on digital capital markets, and proactively build the supporting infrastructure required for digital capital markets.
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