One of those who used to work for the Chinese government is of the opinion that having a digital stocks market will be possible by the time digital currencies are fully developed.
The former chair of the China Securities Regulatory Commission, Xiao Gang, wrote a book where he talked about reforming the Chinese capital market. In it, he said that once the CBDC is out, digital stocks won’t find it difficult anymore.
In conventional finance, there is a clear difference between stocks and currencies but in blockchain, the difference between the two is not distinct. For this reason Xiao said: “digital stock is the natural product of digital currency in the future.”
But if this must come to be, some work has to be done. These include linking the CBDC to the digital stock market, making smart contracts so that digital stocks can be prepared, and performing digital stock trading and settlements with digital currencies.
Apart from these, Xiao also thinks that the digital currency is necessary for digital finance to come to live soon.
“Digital currency will bring impact and influence on currency issuance, circulation, settlement, asset pricing, asset trading and other systems attached to currency in various countries and regions.”
Xiao admitted sometime ago that China’s economy is fast changing to become a digital economy. He said this is going to happen faster when the right regulations are in place to favor the crypto market.