The head of the People’s Bank of China’s (PBOC) technology department says standardisation will play a key role in expediting financial collaboration amongst participating nations in the Belt and Road initiative.
In an article published by Modern Banker Li Wei (李伟) writes that Belt and Road will serve as key mechanism for both financial collaboration and standardisation.
“Financial standardisation plays the foundational role of ‘laying roads and building bridges’ for the connection of funds,” writes Li.
“[It’s] the key technical support for the linkage and connection of financial markets.
“Undertaking exchange and cooperation for Belt and Road financial standardisation, and making standardisation the ‘soft connection’ for creating ‘hard mechanisms’ for cooperation, helps to reduce the fund connection costs for participating countries, and creates an excellent financial cooperative ecosystem.
“Under the Belt and Road Initiative, China is undertaking continuous exploration in the areas of financial policy cooperation, cross-border funds connections, infrastructure linkages, payments and settlements connections, and financial services integration.
“China is undertaking multiple forms of exchange and cooperation with Belt and Road nations with regard to financial standardisation, and financial standardisation plays an active role in helping funds to circulate.”