Research on the Application of Block Chain Technology in Small and Medium-Sized Financial Instituti

Chen Qing

Abstract：Along with the internet and financial reform， block chain technology， the product of this era， has become an important force supporting the development of the current financial industry. The “Belt and Road”?requires funding and support. As a new highland of land-locked reform and opening up， it is of great significance for Shanxi province to discuss how to apply various application scenarios， technical solutions and business models of block chain technology in the financial field， which will reduce financial transaction costs， improve resource allocation efficiency and ensure information security and reliability in the future. This paper conducts research on the application level of block chain in the financial field under the background of the “Belt and Road”， analyzes cross-border settlement and securities circulation， and discusses the relationship between investment and financing， credit investigation system and financial supervision. The paper also puts forward policy suggestions on the current problems in the application of block chain technology in small and medium-sized financial institutions in Shanxi province.

Key words： block chain; financial; the “Belt and Road”

CLC number：R445-4 Document identificationg code：A

I.?Introduction

The financial industry is currently the most concerned application field of "block?chain" technology.?In the development of the economic market， the financial industry has been actively applying network information technology， but at present， in the process of the development of Internet finance， the competition is very fierce and the supervision is extremely lacking， resulting in chaos in the financial market and various financial risks.?In this environment， promoting the development of fintech and strengthening the exploration of the application of block?chain technology in the financial field can promote the long-term and stable development of the financial industry in the economic market.?The application of block chain technology can provide important technical support for the development of small and medium-sized financial institutions in Shanxi province， improve the matching between block chain technology and financial units?to a certain extent， and can further control the operating costs of financial units， enhance the operating efficiency.?The harmonious application of "block?chain" technology in the financial field also symbolizes that small and medium-sized financial institutions in Shanxi province have taken an important step towards a new stage.

II.?Application Analysis of “Block Chain” Technology in the Financial Field of Shanxi Province?under the Background of the “Belt and Road”

At present， Shanxi， which is at the forefront of the development of the "Belt and Road"， has obtained the opportunity to build a regional financial center along the "Belt and Road"， and a diversified financial pattern has been preliminarily formed. Under this situation， Shanxi has attracted the attention of many countries in the world.?At present， numerous financial institutions at home and abroad have become the main force behind the "Belt and Road" construction.?Banking， securities， insurance are operated and supervised seperately， financial organization， financial market and financial regulatory system gradually become perfect， the financial industry development has entered?into a new stage， the birth of a new type of commercial banks have set up branches in Shanxi province， preliminary form the banking institutions， non-banks multi-level， diversified financial organization system pattern. The financial market is taking shape， and the stock market and the bill market are developing rapidly.

（i） Cross-Border Payment and Settlement

Block?chain+ payment has become a competitive place for major fintech companies.?Among them， the competition of block?chain + payment is particularly obvious in the field of cross-border payment.?The application of block?chain technology in the field of cross-border payment can not only reduce the cost of financial institutions and improve the efficiency of cross-border payment business， but also open a new situation for "small cross-border payment" which is not consistent with the reality?before.?At present， the common cross-border settlement mode generally involves collection， exchange acceptance and collection by commission. In traditional payment and settlement， transactions can only be conducted through an intermediary. In this process， all financial units should have independent financial systems， and different institutions should establish agent relations with each other，?at the same time， the credit conditions should be clarified.?Any cross-border payment transaction shall be recorded in detail from the institution， and reconciliation and clearing work shall also be carried out with the dealing party. Therefore， the transaction speed will be too slow and the cost will be too high.?In view of the above problems， the block chain model reflects the advantages of security and other aspects in the cross-border payment. Due to the development of the blockchain technology， we expect that in the future， when making small cross-border payment， it will be as simple as sending a red envelope on the mobile phone.?The advantage of the subsequent development of block chain lies in the efficient and secure transaction mode， which is full of imagination in the field of cross-border payment.

（ii） Securities Trading

At present， the global financial system that regards the dollar as the core has certain limitations from the perspective of the system. As the U.S. generally handles the financial crisis mainly by transferring risks， which has a negative impact on the global financial system， and some regions have serious economic crises under this mode.?While China advocates the “Belt and?Road” strategy， but in practice， it is difficult to control costs due to the settlement of dollars， so it is more necessary to deal with complex exchange rate risks. To overcome the problem， China must clear the necessity of virtual currency system development; promote cooperation with Asian financial organization cooperation， give full play to technical advantages of block chain，?such systems， which allow both sides to agree on rules and build on joint agreements， create sound legal guarantees for operational stability and security.

With the block chain technology， the virtual currency system can be further constructed， thus creating innovative international transaction channels for the “Belt and Road” regions along the route.?At the same time， from the perspective of relevant financial institutions in Shanxi province， they can break through the limitations of the current payment system and fully deal with the complex processes in cross-border payment and other links， so as to create an Internet transaction mode that can resist risks and control costs for relevant enterprises along the route of the "Belt and?Road".?On this basis， the extensive application of relevant public stocks and other securities trading links can be realized， which， to a certain extent， realizes the mutual connection between China and the regional financial industry along the route， and can also improve the external cooperation of relevant financial institutions in Shanxi province to a certain extent.

（iii） Investment and Financing

The connectivity of the financial industry is a prerequisite to promote in-depth cooperation in economy， trade， investment and other related links. However， currently， small and medium-sized financial institutions in Shanxi province generally need to deal with a kind of risk， which is mainly the limitation of financing， especially the serious problems of overseas financing.?If relevant enterprises create richer access to information by virtue of block?chain， or achieve certain connection with relevant data of the regulatory authorities， it is conducive to improving the transparency and enabling investors and the financial sector to build strong confidence in relevant enterprises.?Or with the help of block chain， further create more favorable information conditions for enterprises in the "Belt and Road" coverage area， but must give priority to build up the personal data repository that can meet the security requirements， and realize access on the basis of meeting the requirements.?In the process of applying block chain technology， all personal data should be stored in a more stable space. In addition， personal data should be used reasonably， such as filling in forms， to prevent data processing from being too complicated and to improve the utilization rate of resources.

（iv） Credit Reporting System

At present， in the process of cross-border credit， commercial banks should give priority to the financial qualification of financing entities.?Related bank has constructed the financing of credit files in turn， in the assessment link， information is extracted from other banks and financial institutions with cooperative relations， the process is relatively complicated， involving a large number of audit procedure， makes the defect of information and data lack of timeliness， the utilization rate is seriously insufficient and the cost is difficult to control. The above problems are particularly prominent in cross-border credit investigation cooperation， which is an important part of the "Belt and Road" financial cooperation.

To achieve the financial cooperation of the "Belt and Road" countries， we should enhance the communication and cooperation with the countries along the route and relevant regional credit investigation and control institutions， focus on the establishment of credit rating system， improve the level of credit risk prevention and control， and protect the legal rights and interests of relevant subjects.?In addition， mutual communication and cooperation between credit investigation departments or rating agencies should be enhanced. On the basis of using block chain technology， credit investigation information should be effectively entered by means of algorithms and kept in the corresponding block chain platform， so as to improve information transparency， control the use cost and meet the requirements of information timeliness. Relevant commercial bank institutions must ensure the security of their credit data and improve the convenience of the loan approval process. By virtue of the extraction of relevant information in the block chain， loan institutions can more efficiently implement the credit investigation and approval work.

（v） Financial Regulation

Prevention and control of financial risks and guarantee of financial security have become the core objectives of Chinese?financial supervision system.?Shanxi province is a bridgehead in the "Belt and Road" construction pattern. The block chain technology has natural advantages in the application of international clearing， cross-regional trade， financial connectivity and other aspects. Therefore， it is crucial to make use of the power of the block chain technology to enable financial security and supervision and enhance the security of the financial system. In addition， in recent years， there are more and more "cross zones" in the financial industry. Illegal and illegal operations have frequently broken out in the Internet finance field， and potential financial risks have been gathering. The vulnerability of the financial industry has increased significantly， which has brought severe challenges to the financial security and risk prevention work of Shanxi province.

Block chain technology can create a new channel for domestic financial supervision work. On the basis of block chain， relevant financial units will carry out certain digitization based on user information and transfer it to the corresponding module. In addition， an electronic certificate is created for the relevant parties in the trading process， and the two parties are connected at the same time. All transactions should be verified by this certificate. At the same time， the transaction is carried out in the user IP， which enables the block chain data to achieve the traceability effect to a certain extent. Meanwhile， with the help of the detection process， the regulatory authorities can timely understand the abnormal information and enhance the comprehensive efficiency of supervision.

III. Countermeasures for the Development of Block Chain Technology in Shanxi Financial Institutions under?the Background of the “Belt and Road”

（i） Expand Financing Channels and Control Financial Risks

Under the background of the “Belt and Road”， in order to enhance the comprehensive advantages of Shanxi local financial institutions and achieve a comprehensive financial service model， it is necessary to firstly promote the improvement of financial functional areas in Xi 'an， so that local financial units can achieve further development， explore innovative development paths， promote the overall progress of private economy， and build a more diversified financial system under ownership. In addition， we should also pay attention to the development of private small and medium-sized financial units， reflect the recognition in the market， to achieve the division of labor and cooperation requirements of the financial service model. In combination with Chinese multi-level capital market， we will help promote the development of finance for all. At the same time， we should?pay attention to enhancing the cooperation and risk awareness with the countries along the Silk Road， and enhance the awareness and ability of small and medium-sized financial institutions in Shanxi province to deal with financial risks.

（ii）?Establishing?and improving?an early warning mechanism for financial risks

In the process of implementing block chain technology， network effect must be taken into account. In the case of implementing block chain technology， small and medium-sized financial units in?Shanxi province must try to cooperate with global advanced financial units. Considering that the development of block?chain technology in China is in the early stage， it is necessary to build block?chain technology alliance. Relevant financial units must establish a more perfect industry basis， improve its standardization， guarantee security， and create prerequisite guarantee for the subsequent stage of improving the legal system under the premise of practice.?At the same time of financial investment in countries along the route， a corresponding early-warning mechanism of financial risks is established through the collection and analysis of relevant data of world financial risks， at the same time， we should strengthen early-warning cooperation with countries along the Silk Road， reduce financial investment risks in Shanxi province through mutual benefit and cooperation， and improve the existing early-warning mechanism of financial risks.

（iii） Improving?the regulatory system for "block?chain" technology

To a certain extent， the development space of block?chain depends on the mode of national supervision， and the awareness of regulatory authorities and the degree of regulation will play a significant role. The development trend of block?chain is obviously different from that of ordinary financial development system， or it may reflect certain conflicts. Based on this， it is necessary to seek the understanding and support of regulators， improve the frequency of communication with regulators， set up a special research team， and focus on the analysis of legal system of block?chain technology. On the basis of formulating the industry basis and norms， improve the degree of standardization of relevant investment business， control various risks caused by financial innovation， explore a new regulatory path， starting from the field of block chain technology， achieve the reform goal of block chain all-round supervision.

About the author：

References：

[1] 尹紀曦 .“一帶一路”下區塊鏈技術在金融領域的應用研究 [J]. 商情 ，2017 （28）：3.

[2] 陳青 .“一帶一路”背景下區塊鏈技術在金融領域的應用研究 [J]. 今日財富 ： 中國知識產權 ， 2019（7）：15-16.

[3] 張宇懷 ， 于鳳 . “一帶一路”背景下區塊鏈技術在國際貿易領域的應用與展望 [J]. 時代金融 ， 2018（21）：12-13.

區塊鏈技術在陜西省中小金融機構的應用研究

陳 青

（西安培華學院，陜西 西安 710125）

摘要：隨著互聯網與金融技術不斷的創新改革，區塊鏈技術這一時代的產物已經成為支撐現階段金融行業發展的重要力量，

“一帶一路”需要有資金保障和支持，作為內陸型改革開放新高地的陜西，探討如何將區塊鏈技術的各種應用場景 ， 技術方案

和商業模式應用在金融領域 ， 在未來對于實現降低金融交易成本 ， 提高資源配置效率和保證信息安全可靠具有重要意義。本文

從“一帶一路”背景下區塊鏈在金融領域的應用層面上開展研究，基于跨境結算、證券流通做出分析，結合投融資以及征信

體系跟金融監管關系展開探討。并對區塊鏈技術在陜西省中小金融機構應用目前存在的問題提出政策建議。

關鍵詞：區塊鏈;金融;“一帶一路”