Source: Metaverse
Yesterday afternoon, Xiao Gang, member of the 13th National Committee of the Chinese People's Political Consultative Conference and former chairman of the China Securities Regulatory Commission, appeared as a guest speaker at the 2024 Bund Conference "Talking about the Future: Exploring the 'Entity' of Web3 Digital Dreams" forum. He said that RWA is a vivid practice of returning finance to its roots and serving the high-quality development of the real economy.
He pointed out that the Third Plenary Session of the 20th CPC Central Committee and the Central Financial Work Conference both proposed to do a good job in five major articles: science and technology finance, green finance, inclusive finance, pension finance, and digital finance, which pointed out the direction for the development of financial technology, and the development of Web3 can provide strong support for doing a good job in the five major articles and promote the development of financial services for the real economy.
He believes that RWA uses Web3 technologies such as blockchain to give digital forms to physical assets that already exist in the real world and intangible assets such as intellectual property rights, carbon credits, and data elements, and establishes a value mapping between the real world and the digital world.
He also proposed that we should uphold the principle of technological neutrality and strengthen supervision in a forward-looking manner. "Bitcoin and other virtual currencies are not equal to Web3, and tokens, that is, the tokens we are talking about, are not necessarily completely decentralized." Not only that, he said that we should strengthen cross-border regulatory cooperation, coordinate policy formulation, and jointly explore regulatory frameworks that adapt to new technologies.
This forum is co-organized by Ant Group and ForesightNews. It aims to explore the latest progress and industrial practices of Web3 technology, listen to the innovative voices of Asian financial centers, and find a successful path from concept to implementation of real-world asset tokenization.
The organizers believe that with the advancement of new quality productivity, scientific and technological development is seeking new wisdom. The era of cutting-edge technology and intelligence driven by technological innovation serving industrial development is opening up. Looking to the future, cutting-edge technologies represented by blockchain privacy computing and big data AI are becoming a key force in promoting the quality and efficiency of the digital economy.
The following is the full text of Xiao Gang's speech compiled by Metaverse:
Dear guests, ladies and gentlemen:
Good afternoon, everyone. I am very honored to be able to attend the 2024 Bund Conference today and discuss with you the materialization of the Web3 digital dream. Here I would like to express my warm congratulations on the successful convening of this forum and extend my sincere welcome to every guest and audience present.
Every leap in information technology is profoundly changing the way we live and work. From the popularization of the Internet to the rise of mobile Internet, to the breakthrough of blockchain technology, and the rapid development of emerging technologies such as big data and artificial intelligence, the wheel of technology is rolling forward, leading us into a new digital era.
Today we focus on Web3, which is not just an iteration of technical terms, but also heralds a secure and transparent network ecology where users have more control. It depicts a new vision for the transformation of Internet development from information interconnection to value interconnection.
The digital economy has become an important engine for driving global economic growth. The Third Plenary Session of the 20th CPC Central Committee and the Central Financial Work Conference both proposed to do a good job in five major areas: science and technology finance, green finance, inclusive finance, pension finance, and digital finance, which pointed out the direction for the development of financial technology. The development of Web3 can provide strong support for doing a good job in the five major areas and promote the development of financial services for the real economy. In terms of science and technology finance, the decentralized financial platform brought by Web3 technology can provide a global source of funds for science and technology companies, increase the flexibility and capital efficiency of entrepreneurs' financing and financing. Smart contract technology can realize the automation of business logic, execution and transaction transparency, and reduce operating costs and risks. In terms of green finance, Web3 technology can help establish a more transparent and credible carbon footprint tracking and trading system, and improve the traceability and trust of green finance. In terms of inclusive finance, Web3 helps to lower the threshold for financial services, so that more people, especially remote areas and low-income groups that were originally difficult to cover by the traditional financial system, can obtain financial services at a lower cost.
In terms of pension finance, the transparency and security mechanisms provided by Web3 also have potential value for building a long-term and stable pension management and investment platform.
In terms of digital finance, Web3 has promoted the digitization of financial assets. For example, through the tokenization of various assets, the issuance and trading of assets has become more efficient and flexible. At the same time, it has strengthened the user's control over digital assets and provided infrastructure and technical support for the in-depth development of digital finance.
In this revolution brought about by Web3, the tokenization of real-world assets, referred to as RWA, is a bridge connecting the digital and physical worlds, and is a vivid practice of returning finance to its roots and serving the high-quality development of the real economy.
A large amount of real assets have been deposited in my country's traditional industries, especially the manufacturing industry, but they are often discounted due to lack of liquidity, or because they are not well operated, resulting in low asset utilization, which restricts the release of economic growth potential.
RWA uses Web3 technologies such as blockchain to give physical assets that already exist in the real world, as well as intangible assets such as intellectual property, carbon credits, and data elements, a digital form, and establishes a value mapping between the real world and the digital world.
This method, on the one hand, its digital characteristics can improve the liquidity and tradability of real assets, allowing more investors to obtain investment opportunities in high-quality assets and clear the financing bottlenecks of traditional industries. On the other hand, the use of blockchain smart contract technology can improve the transparency of asset operation management and disposal transactions, reduce moral risks, and effectively improve the efficiency of asset transactions and reduce transaction costs.
Of course, when we embrace Web3 technology, we must also be aware that any technological progress is accompanied by risks and challenges. How to effectively control risks while promoting technological innovation is an important issue before us.
First, keep up with the trend of industry innovation, mobilize more market players' innovation momentum, and explore innovative pilot projects.
Second, we must strengthen supervision in a forward-looking manner. Bitcoin and other virtual currencies are not equal to Web3, and tokens, that is, the tokens we are talking about, are not necessarily completely decentralized. The principle of technological neutrality should be adopted - we often say that we should adhere to the principle of technological neutrality, keep a close eye on the risks that may be brought by the outside world, and focus on supervising the authenticity, compliance and volatility of RWA assets. Risks should be strictly controlled on the off-chain asset side, and speculation should also be strictly controlled on the on-chain transaction side.
Secondly, we should strengthen the education of risk management and technical ethics, enhance the public's risk awareness, and strengthen industry self-discipline. Finally, we should promote international cooperation, encourage market institutions with strong scientific and technological strength to participate in international innovation projects, and absorb and learn from international experience.
At the same time, we should strengthen cross-border regulatory cooperation, coordinate policy formulation, and jointly explore regulatory frameworks that adapt to new technologies. For example, the World Bank uses Web3 and RWA in research infrastructure investment, and Singapore and my country's Hong Kong Special Administrative Region are also actively developing Web3. We should consider further cooperation with Singapore and Hong Kong in RWA cross-border investment transactions, attract overseas funds, revitalize the physical assets of traditional domestic industries, and inject more liquidity into the domestic real economy.
Dear guests, dear friends, Web3 is not only a technological innovation, but also a change in the way of thinking. Let us take this forum as an opportunity to jointly seek development, build a foundation for security, and create a future path, and move forward hand in hand in the wave of deep integration of the real economy and the digital economy.
Thank you again for your participation, and I look forward to hearing the insights of all the guests in the next agenda. I wish this conference and forum a great success. Thank you all.
Alex
Brian
Kikyo
Hui Xin
Joy