The Application, Challenges and Legal Supervision of Blockchain in Cross Border Payment in China

DOI

10.2991/aebmr.k.220306.054How to use a DOI?

Keywords

Blockchain; Cross-border payments; Legal challenges; Public-private partnerships

Abstract

Exorbitant costs and extensive lead times are key concerns for transboundary payments. Transboundary deals face greater development challenges than domestic payment systems since they require a high degree of trust and include currency conversion. In this context, blockchain can successfully establish new cross-border payment services and promote cross-border commerce by employing a distributed public ledger that integrates public key encryption and peer-to-peer technology. Blockchain has got two key characteristics: distributed consensus and anonymity. By eliminating intermediaries between third-party finance agencies, it not only allows for instant payments around the clock but also contributes to mitigating the exposure to transboundary capital flows and meeting consumer needs for expedient transboundary payments and clearing services. This paper argues that while blockchain technology eliminates problems and presents effective strategies for conventional transboundary payments, it also raises many legislative and regulative issues for China. As the law itself is not yet mature, especially given the changes in international payments in the wake of the epidemic, it is worthwhile to explore the operating rationale and regulation obstacles of blockchain to the maximization of profits and minimization of risks in transborder payments by leveraging its inimitable strengths.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

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TY  - CONF
AU  - Xiangyu Chen
PY  - 2022
DA  - 2022/03/17
TI  - The Application, Challenges and Legal Supervision of Blockchain in Cross Border Payment in China
BT  - Proceedings of the 7th International Conference on Economy, Management, Law and Education (EMLE 2021)
PB  - Atlantis Press
SP  - 368
EP  - 371
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220306.054
DO  - 10.2991/aebmr.k.220306.054
ID  - Chen2022
ER  -