Regulator in China Warns Against Idealizing Blockchain
The head of the financial regulator, Fan Wenzhong, presented his argument at this year’s Fintech Bund Summit, stating that despite blockchains innovation, it is wrong to idealize this type of technology.
He also noted that despite popular knowledge, the notion of multiple entry record-keeping has been an existing concept for several hundred years. He explained that decentralized systems are more like a loop than a new booming concept, as even history’s earliest transactions did not hold a central authority. Wenzhong admitted that although blockchain is very useful, the cryptocurrencies it creates are not.
China’s government has rejected the use of cryptocurrencies. By May 2018, the country banned public access to over one hundred different cryptocurrency exchanges worldwide. In addition, officials are processing three hundred acts of crime related to these virtual currencies.
According to the Chinese government's recent analysis, blockchain projects span for an average of 1.22 years, only eight percent of which remain active since their initial launch. On the other hand, China’s president, Xi Jinping, expressed his positive outlook on blockchain technology, deeming it a technological revolution.
`President Xi Jinping also explained that this era of unprecedented technology innovations and industry changes will reconstruct and reshape the world’s economic structure.