Application Of Block Chain In Cross-border Liquidation Of Commercial Bank

With the development of the Internet,problems in the financial sector have gradually emerged.They mainly focus on issues such as the obvious trend of monopolization,lack of guarantee of data security due to backward encryption technology,lengthy business processes caused by opaque information,and high transaction costs.Since its introduction in 2008,the block chain has caused extensive discussion in the financial market.It is believed that its decentralized model,smart contracts,and asymmetric encryption technology can effectively improve the flow of traditional financial services and reshape the underlying framework.In the context of the accelerating pace of the RMB international process,cross-border settlement has become one of the most promising application scenarios for block chains.As a representative of traditional financial clearing institutions,commercial banks have the disadvantages of the centralized model that gradually lose their advantages in the industry competition.Commercial banks combine block chain technology with cross-border settlement services as an important direction for their development.This article begins with a literature review of block chains in the financial sector,commercial banks,and cross-border liquidation.It first explains the concept,characteristics,basic principles,and transaction flow of block chains,and focuses on cross-border liquidation using private chains as their focus.The Chinese model compares with the traditional cross-border liquidation model and considers that the role of the block chain in traditional cross-border liquidation is reflected in two aspects: first,optimizing the process;second,reducing the capital occupation.Secondly,on the basis of learning from the application mode of cross-border liquidation of different institutions at home and abroad,a cross-border direct liquidation block chain platform of China Merchants Bank was used as a case study object to introduce the project process of China Merchants Bank's application of block chain technology.With the application model,it is believed that the application of this technology by China Merchants Bank can improve payment efficiency,reduce transaction costs,enhance transaction security,ensure system security,and provide conditions for real-time supervision.However,due to the lack of relevant block chain related laws and regulations in China,the standardization of block chain is still blank,and the technical flaws in block chain technology itself pose a certain risk to the application of block chain by China Merchants Bank.In addition,China Merchants Bank has problems such as narrow block chain application,inadequate platform construction,and lack of communication with other industry entities.For this purpose,this paper gives further optimization of China Merchants Bank and China's commercial banks in the application of block chain cross-border settlement scenarios.Rationalized advice.China Merchants Bank proposed countermeasures such as strengthening industry exchanges,participating in standard setting,establishing block chain supporting risk mechanisms and management systems,strengthening talent pools,and calling for the establishment of China's commercial bank cross-border settlement block chain alliance.In addition,China's relevant laws and regulatory agencies should establish a supporting legal system in a timely manner to clarify the regulatory attitude.Institutions such as the Central Bank and the Commercial Bank Association have played a leading role in promoting the establishment of unified standards for block chains,promoting the issuance of digital currencies and boosting the development of block chains in the field of cross-border payment.