Focus on the G20 Summit, the technological engine of digital inclusive finance - blockchain

As the G20 summit comes to a close, we already miss it before we even say goodbye. This summit has attracted global attention, and digital inclusive finance is one of the important topics of this summit. The summit has formulated the "G20 Digital Inclusive Finance High-Level Principles". At the beginning of the opening ceremony of the summit, President Xi Jinping gave inclusive finance a positive meaning, and the word "digital" added to inclusive finance shows its intention. Let me share with you the interpretation of the deep meaning behind these two words.

As the G20 summit was held in China for the first time, Hangzhou, as the host city of the conference, attracted the attention of the world. It is not only because of the beautiful city atmosphere, but also because of the topics of this summit that have attracted great attention from all countries. Digital inclusive finance is one of the important topics of this summit. What is the deep meaning behind it?

The first guiding principles for digital financial inclusion

In order to promote inclusive finance at the G20 summit, China has formulated the G20 High-Level Principles for Digital Inclusive Finance (hereinafter referred to as the High-Level Principles), which is the first international guidance document in this field. In addition, it has also upgraded the G20 Inclusive Finance Indicator System and formulated the G20 SME Financing Action Plan Implementation Framework.

Among them, there are 8 items in the "Advanced Principles", namely advocating the use of digital technology to promote the development of inclusive finance; balancing innovation and risks in the development of digital inclusive finance; building an appropriate legal and regulatory framework for digital inclusive finance; expanding the digital financial service infrastructure; taking responsible digital financial measures to protect consumers; paying attention to the popularization of consumers' digital technology knowledge and financial knowledge to promote customer identity identification for digital financial services; and monitoring the progress of digital inclusive finance.

The deep meaning behind the six words "digital inclusive finance"

The so-called digital inclusive finance is what we often understand as "Internet +" inclusive finance. The development of China's digital inclusive finance is something to be proud of, because in terms of finance, China has never been a leader, but in terms of digital inclusive finance, it should be said that it has been recognized by many countries in the world.

The World Bank's Global Financial Inclusion Index released in 2015 shows that currently, there are still 2 billion people in the world without bank accounts; only 10% of people have credit cards; among those who need loans, only 21% can obtain services through formal financial institutions; 72% of adults lack financial knowledge; in the traditional credit reporting system, less than 25% of people have credit records; and rural loans only account for 23% of the total loan balance.

Globally, it has become a consensus among countries that inclusive finance can effectively reduce poverty and narrow the gap between the rich and the poor.

Blockchain, the technological engine of digital inclusive finance

The word "digital" is added to inclusive finance to highlight the important role of technology. The realization of these grand goals of inclusive finance is mainly driven by technology, such as digital technology (mobile Internet, big data, cloud computing, etc.) to improve the efficiency of collecting and processing information, reduce costs, and thus touch a wider range of more subtle financial needs. Blockchain is one of the many links. Blockchain technology can at least promote the improvement of financial inclusion in the following aspects.

1. The mechanism of open source democracy provides everyone with the opportunity to participate and eliminates the inequality of opportunity caused by the unequal application of information technology.

2. Decentralized mutual assistance and cooperation can prevent monopoly groups from controlling information resources to create monopoly profits and reduce social transaction costs.

3. The whole network accounting system creates a universal credit system, which can turn the value created by credit into assets and obtain financial services.

4. The combination of blockchain technology and technologies such as the Internet of Things can enable everyone to have assets that can be evaluated and traded, and use them to create wealth.

Whether it is going with the flow or going against the tide, the core is to serve all mankind

Driven by new technologies such as mobile Internet, big data, and cloud computing, inclusive finance has taken steps towards digitalization and, with its own advantages, has broken through goals that have been unattainable for traditional inclusive finance for decades, making financial services more efficient, more equal, and more transparent, truly benefiting the general public.

Dare to be the world's trendsetter

Let us end this article with a sentence from President Xi Jinping’s keynote speech at the B20 Summit: “The tide-rider stands at the head of the waves, holding the red flag without getting it wet.” The new wave of the world economy requires open source and flowing water. With great wisdom to grasp the big trend and with great ambition to achieve great realm, the opening road of blockchain may illuminate the future of mankind in the near future.