Zhang Ping: Thoughts on developing my country’s digital financial technology base in the Web3.0 era

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2023 On December 21, Zhang Ping, academician of the Chinese Academy of Engineering and professor of Beijing University of Posts and Telecommunications, attended the 2023 Zhongguancun Forum Series - the 11th Digital Finance Conference and delivered a speech titled "Thoughts on the Development of my country's Digital Financial Technology Base in the Web3.0 Era". He pointed out that our country is in the digital finance 3.0 stage with the deep integration of finance and digital. On the one hand, we must accelerate the construction of a financial power and promote the high-quality development of digital finance. On the other hand, we must also prevent and resolve financial risks, especially to prevent systemic financial crises. risk. To this end, it is necessary to build a safe and trustworthy "permissioned Web 3.0" and build a solid technical foundation for digital finance. Web3.0 empowers the development of the financial industry, strengthens the research and development and application of blockchain technology, and creates a trust foundation for digital finance; promotes the innovation and popularization of distributed storage technology, creating the data cornerstone of digital finance; promotes encryption algorithms The optimization and upgrade have created a security barrier for digital finance. In response to the difficulties and challenges faced by Web3.0, he proposed a path for the construction of a digital financial technology system in the Web3.0 era, that is, on the one hand, we must give full play to the two-wheel driving role of digital technology + digital elements, deepen the structural reform of the financial supply side, On the other hand, the comprehensive development of the digital economy creates more technological innovation resources and application demand scenarios for digital finance. Finally, he concluded that Web 3.0 has laid a solid digital foundation for the construction of digital finance. In the future, it is still necessary to further improve the laws, regulations, rules and standards of digital finance, and strengthen international cooperation to establish a new digital sovereignty and digital finance security technology system.  

Zhang Ping, academician of the Chinese Academy of Engineering and professor of Beijing University of Posts and Telecommunications

Everyone Experts, distinguished guests, hello everyone! I am very happy to participate in today's technical seminar. I am Zhang Ping from Beijing University of Posts and Telecommunications. The topic I bring to you today is "Thoughts on the Development of my country's Digital Financial Technology Base in the Web3.0 Era". I will report from the following three aspects.

The first is to accelerate the construction of a financial power and promote the high-quality development of digital finance.

General Secretary Xi Jinping has made important arrangements to deepen the reform of the financial system and improve the functions of the capital market on various occasions, especially on December 11 General Secretary Xi Jinping pointed out in his speech at the Central Economic Work Conference that “coordinating security and development is an important principle that must be grasped in digital financial work.” Then the value and significance of digital finance is that digital finance provides a more convenient cross-border payment and settlement method and promotes deeper and more solid economic and trade cooperation. On the other hand, digital finance strengthens the international investment cooperation capabilities of financial resources and protects financial overseas expansion. At the same time, digital finance empowers green financial innovation and provides a full range of financial service support for green development.

The development of digital finance today is also facing some real pain points. For example, in terms of subject changes, people in the Z era have a common understanding of consumer needs. Values, etc., and the scene has also undergone major changes, such as online consumption and on-site immersive experience, accelerated product replacement, new financial risks, etc., which makes my country in the digital finance 3.0 stage with the deep integration of finance and digital. Preventing and resolving financial risks, especially preventing systemic financial risks, is the fundamental task of financial work and the eternal theme of digital finance.

The second aspect is to build a safe and trustworthy "licensed Web3.0" and build a solid technical foundation for digital finance.

Web3.0 is the latest stage of development from Web1.0 to Web2.0. As we all know, Web1.0 is the stage of portal websites and has great impact on finance. Generally speaking, we started in 1989 as a financial information release website, which was our first prototype. After 2004, Web2.0 appeared, which was a relatively extensive stage, with the emergence of online banking, online loans, etc. In 2014, we entered the stage of normalized supervision, that is, Web3.0. Virtual tellers and metaverse-style virtual business halls will be the main features of the decentralized and trustworthy value Internet in the future.

The Internet evolution history of digital finance has also gone on for a long time. From 1967 to 2024, it opened the digital era of the financial industry and the platform of the financial industry. The era of modernization is the technological era of finance. From the perspective of society, communication technology, network technology, and financial application, they all have their own characteristics. Due to time constraints, I will not describe them one by one.

Web 3.0 empowers the development of the financial industry by strengthening the research and development and application of blockchain technology, which is the basis of trust for digital finance and promotes distribution. The innovation and popularization of storage technology is the data cornerstone for building digital finance. Promoting the optimization and upgrading of encryption algorithms is a security barrier for digital finance. We have our own interpretations in these three aspects. We can also see some of the transformative impacts that Web 3.0 has brought to the financial industry. For example, in terms of trading products, they are decentralized transactions, derivatives swap transactions, prediction market transactions, and liquidity. provided. In terms of product issuance, there are stable currency certificates, lending products, securities insurance and NFT issuance. In terms of ownership management products, there are wallets, asset management and payment networks. The central keyword is decentralized finance.

We can also see some difficulties and challenges faced by Web3.0.

Difficulty 1: Blockchain technology has not yet matured, Blockchain has major deficiencies in terms of throughput and delay, its efficiency in supporting large-scale applications is very low, and its security is not perfect.

Difficulty 2: Comprehensive talents are in short supply. Since the development of Web3.0 involves comprehensive applications , mathematics, economics, computer science and other knowledge, the existing training system is imperfect and there is a shortage of comprehensive talents.

Difficulty 3: Legal risks,The legal and regulatory systems for some new business formats such as DeFi products and DAO organizations have not yet been perfected.

Difficulty point 4: Decentralization is relatively difficult. Except for giants, it is difficult for ordinary users to build a dedicated blockchain environment.

Difficulty point 5: The infrastructure is not perfect enough. For example, development tool technical standards, business model distributed identity management, etc. are all in primary application Stage,

Difficulty 6: The risk of computing power monopoly, is also a difficulty. For example, in the Bitcoin network, more than 50% of the network computing power is in the hands of 50 miners (approximately only 1% of the total number of miners), which may bring the risk of computing power centralization.

The following is our reflection on the path of building a digital financial technology system in the Web3.0 era.

In the future development process, we must give full play to the two-wheel driving role of "digital technology + digital elements" and deepen the financial supply side. Structural reforms. This is reflected in the continuous infusion of digital elements into financial services, the establishment of multi-dimensional corporate risk control models for banks based on big data technology, and the in-depth analysis of multi-dimensional social enterprise data. We also have a basic model for accelerating the construction of digital facilities, that is As for the future development model of the metaverse, I have said it on many occasions. In addition to a digital infrastructure and our Web 3.0 technology base, we need to add the word "license" and the payment of the license. Constitutes the application scenarios of digital finance. It mainly has several characteristics. One is to establish a safe and controllable virtual economic space payment mechanism to ensure the safety and reliability of my country's digital finance. Second, we should strengthen production factors such as data computing power to promote the smooth double cycle of my country's digital economy, and break the natural monopoly of network resources to achieve the common prosperity of the people.

In promoting the deep integration of digital finance and industrial digitization, two-way interaction is needed to broaden the space for development. The in-depth application of digital finance and the digital economy will bring new factors of production. The new model of matching value and resources is manifested in the seamless integration of credit, payment, insurance and other financial services into digital economies such as online education, Internet medical care, smart agriculture, and smart factories with the help of big data, blockchain, Internet of Things and other technical means. In new business formats, create "finance +" scenarios and expand the scope of industrial digitalization.

On the other hand, the comprehensive development of the digital economy has created more technological innovation resources and application demand scenarios for digital finance, such as data collection, screening, Mining provides customers with more precise products and services, and also generates multiple new financial service needs. In terms of improving the digital inclusive financial service system, we need to build an industry-finance platform and enhance the service capabilities of industrial finance. This is reflected in our building a platform for industry-finance cooperation to promote information sharing and data interoperability between industry and finance, and in addition to promoting small businesses. The incremental expansion of micro-enterprise financing will improve our system's cost reduction, and continue to improve the depth and breadth of inclusive finance to achieve our goals.