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The mascot of digital yuan Photo: VCG

The development of digital finance is a key focus in the process of the transformation and development of China's financial industry, which has driven significant innovations empowering traditional financial services such as instant payment, risk management and client services, Jin Wei, deputy director of Beijing Liyan Institute for Finance and Development, told the Global Times on Tuesday.

Jin said new types of payment like mobile payment and facial recognition payment have significantly improved payment convenience and transaction security through biological identification and big data technology. Moreover, by using big data and artificial intelligence (AI), digital finance enables more precise risk evaluation and management.

"Those innovations not only optimize traditional financial businesses, but also make financial services more intelligent and convenient and boost the development of inclusive finance," Jin said.

The Central Financial Work Conference held in October 2023 in Beijing emphasized the need for significant efforts in five financial innovation areas - technology finance, green finance, inclusive finance, pension finance, and digital finance. The digital finance was also included in this year's Government Work Report of the State Council. 

China holds unique advantages in developing digital finance, Jin said. 

"The Chinese government provides strong support for digital finance, with the rollout of multiple relevant circulars to boost the development of digital finance. Globally leading internet infrastructure in China, as well as breakthroughs in key cutting-edge areas such as AI, big data and blockchain, provide a solid foundation for innovative financial services," he said.

What is equally important is China's vast and diversified market demand, especially in fields like inclusive finance and rural finance. In this regard, digital finance can fill the void of traditional financial services and enhance the inclusiveness and accessibility of financial services, Jin said.

The Annual Conference of Financial Street Forum 2024 will be held from Friday to Sunday, which is themed "Trust and Confidence." Grasping the opportunity of digital technology revolution to foster the integration of finance and digital technologies and better serve the real economy is one of the topics.

Against increasing global economic uncertainties, rebuilding trust, strengthening confidence and promoting financial opening-up and cooperation will be critical for promoting stable development of the global economy. It not only reflects the strategic positioning of China's financial industry, but also demonstrates the country's firm belief in achieving mutual development through financial opening-up and cooperation, Jin said.