Abstract: In October 2023, the Central Financial Work Conference clearly stated that "building a strong financial nation" requires significant efforts in five major areas, which includes digital finance. The development of digital finance can change the financial system in three aspects: access, efficiency, and risk control, thus contributing to the development of a strong financial nation. China has a first-mover advantage in the field of digital finance, and the development of digital finance in Singapore offers significant lessons for China to maintain its lead and build a great power of digital finance: firstly, promoting innovation to improve financial services and solve pain points; secondly, managing risks to construct a regulatory model that balances innovation incentives and risk prevention; thirdly, promoting openness and encouraging domestic digital finance enterprises to expand globally.
To construct a normalized digital finance regulatory framework suitable for a great power of digital finance, six specific recommendations are proposed: first, establish a stable and transparent regulatory framework; second, carry out more responsive regulation; third, take the new features of digital technology into full consideration when formulating digital financial regulatory policies; fourth, create favorable hardware and software infrastructure and environment for digital finance innovation and development; fifth, promote the two-way openness of the digital finance industry; and sixth, consider establishing digital finance innovation pilot zones.
