 and then you can take off. Okay. So I press record and we are live. We have nine participants. Maybe I'll wait for one more minute. So before Eugenio launches on his presentation, let me say welcome to everybody. The news of the day is the first ever CBDC in the world has launched, which is Bahamas sand dollar today. It's live. So this is very interesting news. Of course, Bahamas is a very small country, and it's only valid within the boundaries of Bahamas. But like the Chinese say, a journey of a thousand miles starts with one step. Yeah. And I can say in Chinese, they say mama lie. So anyway, I think I had sent out the password embedded zoom link. And also, you know, in my mail and also it is there in the meeting agenda. So you think there are participants who are not here because they cannot get on? Is that what you think? Yeah, we've been pretty likely. Okay. I don't know what else I can do to facilitate this because whenever I send out an email announcing the talk that I have, you know, I have the embedded zoom link in there. I didn't get the link today morning at 10 o'clock. There was an email to everyone in hyper ledger, but his capital markets say there it shows the link. Okay. That's beautiful. Thank you, money. Now, before we just just a couple of things, one is that we are operating under the antitrust policy of the Linux foundation. And the second point is that we are also under the hyper ledger code of conduct, which means a couple of things. One is the that we respect each other. And our even when disagreeing with others, the other point is that we need to properly credit others and allow people room to ask questions and to talk. So that's that's sad. I think Eugenio is in confinement because things have gone south in Italy. And they are requiring that people stay at home. So he's even though he's at home, he's going to do this presentation. Thanks for joining and Eugenio, please take it away. Okay. First of all, thank you, VPN for the opportunity. And I hope everybody joining us today will be very interested in hearing me. Very quick first introduction. My name is Eugenio. I've been working in China for a couple of years, basically in investments in corporate and financial investment. I'm joining the hyper ledger community since a couple of years, 20 years more left. And I'm focusing on on the finance application. And I took a chance during this lockdown to start a project focusing on the Chinese operation in the Indian finance industry. So in this lecture, I will try to outline the actually on my point of view, the three pillars over which the national project and national corporation will start revamp and change the financial market. And these are essentially the BSN, the blockchain service network infrastructure, the DC, the CDBC prototype that is actually in testing phase in China in mainland in a few zone of mainland China. And actually, we will, I will finish on giving some highlights on the special implementations in terms of administrations that are promoting these two pillars. I hope everybody is can see the screen. I will and I will start. Is it okay? Yes, it is fine. You should go into presentation mode if you can. Okay. Okay. Yes. Yes. It was just a check. Yeah. Here there is the I started the presentation speaking about a very few quick policies that at national level are supporting the application in finance. There is a five year national information plan that China set up to establish national standards and policy frameworks. The idea is to create a national sandbox for the blockchain application in finance. And actually these standards have been implemented and published easier at the beginning. And you may find here the reference GRT 0184 2020. If you maybe even if you Google it, you, you may find some reference. This is basically a key milestone for the finance application in China of DLP, because it is like a short text of indicating the roadmaps in terms of definition, in terms of hardware and software requirements, in terms of also application layer and consumer API and so on. Of course, China as a nation is joining also the international institutions like ISO that are working more at an international level. And this is for technical standards. For main operational standards, you may see here outlined the most important operational frameworks that interface with the international settlement from RIMI-B to foreign value money. Here you may see the most important and from this, the most important and the one that I've stressed here, institution that are involved in blockchain business industry. The first is the cyber administration of China that is regulating the blockchain service providers and basically all the business operations in terms of software development of blockchain industry in China. Of course, over the China administration of cyber administration of China, there is the Ministry of Industry Information Technology that is the I would say the reference from the policy that is driven the political guidelines over this industry. With a focus on finance industry, there is People Bank of China that is in charge basically in finance of these two national projects. One is the DCIP and the second one needs more related to trade finance operation that we will not cover this topic today. And this blockchain service network instead is actually a multi-framework multi-chain multi-ledger blockchain system that this definition means everything and nothing. The intent of this project is to provide the architecture layer for BLT development in the different kind of industry. Of course, finance will find some restriction in terms of capability of free development because it's a very sensitive sector but due to the fact that it's a national project, it's just started and will be developed the national infrastructure layer for mainland operation. Here are the founders, actually the founders of the initiative but and these are just the reference because day after day new members are joining the project from a national public administration to private administration corporation. Which are the key parts of this infrastructure? The first one I will say and more strategic one that our public city knows that are I will say the end points for BLT developers to build some BLT application around the smart cities in China. You may see here that BSN has also an international strategic plans development plan and we don't know a lot of about this. We know that we'll be ruling with different restriction of course in order to be compliant with international for instance policy in terms of privacy and data management. But if we know that BSN in mainland is fully operated, we know that the progress for the international operation is still in early stage phase I would say. Of course another key part of this element is blockchain framework. We have different kind of framework permission less and permission framework and of course hyper ledger I think it's finding a key roles within the project because it is able to connect overseas the application maybe will be for sure able to connect these DLT application maybe developed internationally into the Chinese marketplace. This is happening because the hyper ledger consents to to head some tools in terms of encryption that consent the data to perform into the Chinese market. And of course another key parts of this project are the BSN portals that are actually the selling point of BSN and DLT application over BSN. Here you may see collected the main participants blockchain framework and users and cloud service provider. It's another key point on the value of this initiative is the fact that all the clouds main cloud service provider internationally join the project in addition to the Chinese one. And I would say from a corporate development point of view we can swift the project in two layer the first one is the BSN alliance that is actually an interoperability protocol that connect different interoperability solution. And this will be like the road for connecting different kinds of DLT frameworks and networks. On the other side we have the open chain consortium that will be in charge of managing the operation and the settlement over the BSN project. I would like to take a break if anybody has some questions please do to ask. Very interesting. I was interested in the international aspect of this because I know that Michael Song from Red Date have been talking to Julian of Hyperledger and others and do you have any more information on this? Yeah there actually we are I can say we because I'm supporting directly Michael on this starting operation and I will be joining his company very soon in terms of business development operation. We are now in the phasing of closing very huge number of strategic partnerships but there are more in finance industry than in IT industry. I cannot say much many more information about this for now but what I can say is that the international development of the BSN is even if it's still in the early stage it's growing very fast because it's actually a unique opportunity and it is opening a very important slice of the market in terms of DLP in connecting overseas DLP solution and Chinese DLP solution. I know that for example in BSN the native support is there for let's say Hyperledger fabric and several others many of them have been derived from Hyperledger fabric. It's not you know even though they have Chinese names some of them have been derived from Hyperledger fabric so it's very interesting that Hyperledger fabric is the premier one of the premier networks supported inside China so one of the ways in which they are doing this is using the allowing you know having everybody conformed to the same standard for cryptography that is a Chinese standard. Do you know anything more about how they will interface that with global international standards because Chinese cryptography may not be accepted in other countries? Yes I what I can say is that we are we have been supporting by different tools open source tools that provide us the capability to interface and manages different kind of encryption worldwide. Okay because when checking for example the signatures you have to if a money is being transferred from or anything of value is being transferred across countries then one cryptography standard operates in one country and the others you know so you have to have that continuity. Which open source tools are you using do you know? We are for instance you may see okay because I've skipped a few slides so probably it's missing we are for instance we are partnering with DML for the small counter yeah demo okay we are partnering with there are few international partners but I cannot disclose here until I don't have the permission for that okay okay so that my idea is and this is what I want to convey is the fact that we are using open source solutions and interoperability solutions in terms of ionization to provide international settlements and international interoperability application of DLP frameworks. Okay we'll we'll talk more about that I think yeah continue. Here I am I've been enlisting a couple of Chinese blockchain and service providers that are actually working and are involved in the alliance of the BSN and alliance thing with strategic partners you may see China you don't pay hand group and WeBank they are all even they even if they are not maybe just a member of BSN they are partnering with strategic partners of us so it's like the the the key point is that BSN it's a national project so it's it is used to support with each other industry together also JD and one way and Baidu Baidu is also very very very very very connected with BSN that is actually ending my my my side of on my side for BSN and I will move on on DC okay DC it's actually a project that started around six years ago and it took a long phase of research it is based on the on the assumption that China is basically the largest digitized market for in terms of sovereign identity and so in terms of possibility to execute digitized transactions here you may see a very brief introduction the intent is to fully replace replaced paper cash 10 15 years according to news information these are these are all my suggestions because you know that there is no official white paper about this solution yet my my statement is is it possible to replace the the paper cash in 10 15 years according to my working experience and life experience in China I think yes what are what are the the what are the main intents of this initiative okay structuring the financial infrastructure by promoting competition into payment market monitoring the on-clothes and internationalization of RMB here you may see very very bad I will see images from my side of this here a double structure of the design the design of it's like a cdbc make the one on one by deposit reserves it is the circulation is based on a two-tire system that is defined in by the central bank that is issuing to the commercial bank that are actively issuing the services to the endpoints or electronic wallets uh one of the key features of of course of the the the concept is the registration center that is actually uh recording the DC transaction and the whole life cycle of the instant circulation and redemption of the cdbc the system is is it a centralized ledger and so it's not a dlt 100 dlt solution of course this project embrace some tools of dlt technology like for instance hands hash function and sorry and encryption um the the idea is that uh the financial market of course the sensitive sector so we need 100% governance on the on the on a centralized ledger so there is no need for a consensual algorithm as well uh one of the probably most interesting uh tool of the dcp is the loose account coupling system that is actually connected to the system that is embodying the solution it is actually a tokenite model and actually the the hash function is hiding the information of the customer of the owner of the wallets to the commercial banks and in fact the information are only uh be available to the central banks that uh and it can be accessed only for specific reasons it is based on uh on spend transaction output sorry and yeah it's uh actually the i would say the the the key point is to use the central bank as the the pivot of the banking operation and to shift to the commercial bank position into uh operating uh system providers the wallets yeah the wallets are of course interfacing with the end user solutions they are pairing i'm i understand that maybe a few of us they they know about this information but i found interesting to to share with the also the ones that are not all in the involved in the topic so wallets uh collect of course a pair of public and private key so they manage the encryption solutions and um are uh wallets are operated by commercial banks or by non-financial institution uh were working as a custodian position into the operation and yeah offline transfer between user and recharge or payment will be provided by AT mobile or POS uh system mobile never advised your code um what are the main impacts on uh on commercial banks commercial banks will play a key role in the again in the in the role of the instance on and redemption of DC and will provide wallets to the user to implement the AYC procedure uh of course DC is a central liability to the public and um this means that the user deposit in wallets are off the balance sheet in terms of commercial bank um that is one of the my question is it possible to connect the DC through the registration center over the psm my my suggestion is that it's still is it possible for me and we will but we will see in the future concretely um i'll say very briefly stressed uh before the the third payment solution like alipay which at bay are um can be involved in the cp operation uh because they could act as a custodian position within the dc operation and the the settlement uh it's actually involved that this this kind of uh uh proceedings uh in the in the final stage i think i will move through the some use case that uh can support the remin b internationalization i would say three scenarios the first one is remin b uh has a settlement courtesy for international trade so you know remin b has a money for international trade operation uh the second one it's remin b used for investment and financing operation cross border and the third one is and i think it's the most rare one it's remin b has an international reserve course um this is another um topic i i decided to to have into the research because it's uh it's still a rumor but uh it can open very wide very wide scenarios in the future so it has been reported in several very first-star information centers and newspaper in china about this proposal of creating a cross-border trade backed by reserve fund and cdbc project in onkong actually it's still of course a rumor and and so there there is no official official statement about this i think but um it's very suggestive it's very suggestive um on one of the key points in trying to summing up all these information uh and i'm trying to to do my best i understand that it can be a bit confusing but uh you may see that uh i'm still in the middle of the presentation so i i'm trying to do my best of course dc has a strategic role in order to make easier the business operation for for any people that are coming to china in in order to collect as much as fund as possible and so even if dc now it is mainly involved in the mainline operation it's very likely that will be that will find a place for uh cross-border operation as well um another key point that i found very interesting it's about a very very easy comparison with the with libra um um i would say that of course uh the difference is libra it's a fully decentralized solution dc is not a fully decentralized solution dc is is using the people bank of china asset reserve so uh it's fully on remin b library using a basket of currency as a asset reserve and of course another difference is that dc is working as a money zero solution just as a money zero solution um instead uh and does not sorry involve the m m money one and money two solution instead libra could theoretically work uh on this and of course on the depth position libra association is not central bank uh lastly about the the pilot project about few uh few bullet points about what's happening i said to uh now the the dcp is in the testing phase in a few zones of mainland china and it has been issued as a statement that on the two uh 2022 the dcp will be tested in the beijing winter olympic as the first step of first international uh use because a lot of phoenix will be coming to china hopefully coronavirus stuff you will see that the dcp is involving uh the the most important commercial banks in china like agricultural bank of china china construction bank and icbc how the people bank of china is trying to develop this this product first of all is setting up fintech company in a specific uh free trade zone free free trade zone with this free trade zone have a pilot uh sandbox of provision and regulation that gives a much more free use of uh an easy use of funds to develop uh innovative financial services this um this this zone basically are all in the the eastern side of china along beijing shanghai and and zhejiang and of course the greater bay area that is belonging to shenzhen and hongkong another key point is of course in the last the last in the last weeks we are we have seen the first use case of dcp in greater bay area and due to the mid-autumn festival this um this electronic uh money system has been tested to the public has been sent to red envelope to the public and uh actually this was the first use on retail use of dcp and uh finishing i've seen yeah finishing the the slide to to dcp i i i'm just making few suggestions we we've seen that bsn is collecting dlt application overseas and it is collecting data off-chain by oracles so my suggestion is uh these uh kind of solution can be used also to record uh dcp data on registration centers and be used as as uh as tools in order to account transaction over bsn we of of of course we don't have the the answer yet uh also because dcp and bsn are still separate project managed by different state administration but uh we can see a vision in the future let's say let's put it this way here are a few suggestions over and a few information over the the main strategic development areas over which the dcp has been testing uh the first one you will see you may see it's beijing kejin away the second one is called yensei river delta and it's embracing shanghai and zhejiang province as a core of this development area and the third one is the pure river delta greater bay area it's involved in mainly shenzhen uh guanzhou and hongkong here you may see the the position it's very strategic it's it's creating like a belt over the eastern side of of china that is still the most advanced one even if for instance uh bsn project is developing very very fast in the western area of china because it is used as a tool to scale up the the applications in different in different industries so now we see also other province like jancy probing kuzhan province to join bsn um here are very few information about each zone because i think that is important for for everybody also connected with specific uh financial and industrial uh reference into into this zone of course beijing is the is known as a political and educational cultural R&D center Beijing is also issuing a very special regulation over over dlt application in terms of business development projects and in terms of regulation provision and data management change um the engine is also very well known in china because it's a very important logistic center in the north but there is a one a huge port that is for instance involved in the main trade finance operation and logistics uh after that yamsa river that i've already said the shanghai it's a it's a main core in the jung where the jung by the way is in the jung there have been you may find angio that is the um the capital city for technology in terms of capital of ant group and other dlt solution like hyperchain uh finally the per river dlt area of course you may see shenzhen and guanjou and uh so this is this slide i like it very much i call suggested goal this is like my vision okay uh my vision is that china is trying to stop opening a seamless data flow running within the national administration network this network will be orientated by bc bsn city nodes over the backbone national hubs belonging to the two different kind of governments and administration okay and uh initiative and finance like bc even if centralized managed could be recalled within the network at the moment as i said before Beijing is taking the lead in issuing the first national projects and regulation in terms of the dlt application projects you may see here different kind of projects in real estate banking logistic this border train uh e-government billing uh there are actually 12 but i think that now the number has been increased uh of pilot business case that connect administration corporation institution is working within an industry in order to develop dlt so platform and solution the Beijing international big data exchange this is actually a quite new statement from the municipality of Beijing and it's about this a huge big data center that should support uh and uh the national implementation of the uh sorry not the national implementation the implementation of the national projects like dc and and the trade finance platform this uh this plan has a five different functional platform an information registration data a transaction platform an operation management platform and i would say a financial service platform these involve the different kind of uh the transaction involves different kind of operation in terms of uh data assets and ownerships that i use right in the registration and of course it may involve this statement of course it's because of cross border operation are operated by the state administration foreign exchange uh so uh it is likely that also uh the state administration foreign exchange will be able to implement this and to interact with the big data exchange uh ancient guy we may see instead the blockchain alliance involving mainly financial institution and logistic and retail institution in order to provide better trade and financial service operations in ancient gen we have a very interesting case um for a government building uh projects and of course uh due to the fact that is actually the the only uh 5g network a fully networking coverage uh city of china and it would be uh on the on the on the first line of the most advanced most advanced city of china um my conclusion my conclusion uh my vision is that bsn could be the engine for the architect of the chinese internationalization in terms of dlt dc we provide a central right management solution to form 20 zero as a first financial layer of the economy and through bsn and through is architecture many dlt application providing maybe money one or money two or money three services would be the value of course the ending conclusion is that these will lead to a digital finance ecosystem and market that could support also national investment strategies like one wealth one road initiative i try to sum all in 14 minutes and i hope you enjoy it very comprehensive and uh integrated across all sectors beautiful presentation and of course the presentation will be available as a link from our from our meeting minutes the next section will be questions from the audience please do not hesitate to ask eugenio questions thank you i can't believe that there's nobody asking questions i'll have to have been if you're going to put me on the spot yeah great presentation i apologize for for coming in towards the tail end of this um let's see i i'm curious about timing um and i and i apologize if you got to this before i showed up but i um i know bsn is live now i know there's some i experiments in i guess shenzhen with the the currency um but at what point do we really expect to see um like real production uh deployments on bsn that you can point to and say here's here's something generating demonstrable value um is and likewise with the currency something that that shows kind of broad adoption um uh rather than kind of pilot phase is that a 2021 thing um yeah actually i think that uh definitely uh for the for the financial uh applications and products like at national level like dcp or the trade finance platform uh the 21 2021 it's the year also because there has been a public announcement about the the dcp application at the beijing winter olympics so they must be be before the beginning of 2022 according to my information uh the next year will be the year and um actually uh actually i can say the first semester of the next year for bsn instead it's more um it's more um uh i don't know how to say uh a development process uh and uh it may take a be a bit more uh because different kind of industries are emerging on on on this on this platform so it takes also uh it must take in consideration a different aspect in terms of a system uh in general system and market application of for dcp and not just in finance but also in uh in the healthcare or in uh um at the government level and we we see very huge difference between for instance the jung that have shanghai and hanjo and have a very high level system and uh second and third tire cd so uh and you can report these also international because there are different kind of issues uh in terms of uh exchanging data and uh develop developing competitive interoperable solution but i can say that as hyper ledger for instance we we we can support 100 percent these operation because we we also have uh interoperable interoperability solution in terms of interoperability networks like hyper ledger cactus and uh i hope and uh actually my story is that i i've been connected with bsn because i was trying to suggesting this and uh so for coming back to your question uh i can say that for financial application 2021 is the year for for seeing a more broader application at least mainland and um for bsn for sure for the international uh foundation the next year will be the starting phase live okay so uh my question regard is in regards to international uh settlements and the different uh cryptology uh that may be required so let me give you a quick example so i'm a contributed to uh hyper ledger cactus and mainly on the requirements and so what i was imagining is that uh from the talk today and also looking at the requirements uh that could be a uh hyper ledger fabric node somewhere in china and one of the examples you've given and there could be another hyper ledger node uh fabric node yeah outside china let's say in honk um i was going to say hong kong with a not a good example anymore uh in a different yeah in a different country let's um and let's say here in the states and those yeah italy well let's say the the regulators um as in the example you've given you know china has got its own cryptology standards and italy's got a different standard that the government is requiring there or they're just using um the default cryptology that ship with the system and then in the middle is uh is cactus which is working um to uh to to to to to do the integration of um of the uh of the settlements to pass them information between the two systems so um what should the the the the cactus uh cryptology look like does it need to does it use its own cryptology um cryptographic standards does it use the standards from china the standards from italy does it use does it need to have uh like swappable like cryptographic yeah um i i think you you you you hit the point uh actually in order to provide interoperability we need to find a solution that can be uh modified and adjusted with different standards in order to use that being used as a settlement token okay for the different uh for instance cdbc solution um i have seen some uh solution on uh based on ethereum and i'm just just suggesting okay uh that uh maybe uh maybe the applicability of uh hyperledger bees who within hyperledger cactus could provide something similar okay but i i i but i'm i'm not the techniques on this that's the point so i that's he's a business guy yeah it sounds like the the mage the sounds like we do need some something which is swappable or some sort of standard exactly okay thank you um kareem had erased his hand but i don't know but they still yeah i was not sure i would have time to ask the question uh my question is um more relative about the usage and uh mass adoption because in china uh alipay and we chat are already well well implemented and basically it's we are cashless here in country so do you think it's more going to stay for a cross border payment or an intra-bank payment or there is a real appetite to move and challenge we chat and alipay uh thank you shane my the my vision is that the dcp and uh that works at money zero and maybe cross border or in terms of supply chain finance solution uh provided by uh alie and group or tansan may interact with dcp over a dlt architecture like bsn in terms of business operation they can work in terms of from financial point of view they can work as uh taking artistic position so uh support the efficiency of the transaction for the application uh my understanding is that alipay and we chat pay are required to support dcp exactly meaning the wallets have to be designed to support dcp in fact i think one of the uh compelling reasons for dcp was the threatening position taken by alipay and we chat pay in terms of the retail payment infrastructure because they they were doing something like 50 to 70 trillion dollars worth of retail uh uh payments and they had captured more than 60 70 percent of the of the of the transaction space yes exactly in fact they i mean they already managed the market in terms of retail operation so they of course they need to be compliant they have to be compliant with but there's no need to compete each other i don't see i don't see this yeah but it also must be because otherwise there would be systemic risks because if your private operators control 70 percent of 30 percent of your uh payment uh infrastructure then there would be systemic risk and i think one of the compelling reasons for dcp is to challenge this and to provide ultimate rails in fact this is uh stated in every every european paper on central bank digital currency that uh uh that to provide a alternative payment rail yes any more questions guys we have come to the end of a delightful hour please engage with eugenio on the mailing list or elsewhere my great grateful thanks to eugenio for growing up and giving such a comprehensive overview of the long game because that's what it is thank you i do not realize that that this is not some game that is going to be played in one or two years but over a long time and that has been the chinese view always they've been working on this for six years we only have people saying oh they are looking into the possibility of working on it in the u.s and elsewhere anyway beautiful and also coincides with the release of the sand dollar which is first first sovereign cbdc to be released thanks my my pleasure and thank you again vpn and uh i would like to conclude my contribution to say that everybody is interesting my the full report of the research will be published soon and will be available on the capital market seek and the great final seek thank you beautiful thank you thanks eugenio and i will try to catch you out of line we'd be interested to discuss with you and thanks for the presentation please interact with them on on on a hyper ledger capital markets thing mailing list because it will be instructive to all of us okay thank you bye bye