“Mythologizing” Blockchain Is A Disservice To The Technology – Top Chinese Regulatorbr>
Fan Wenzhong, head of the international department of the China Banking and Insurance Regulatory Commission, has issued a warning on the hype surrounding blockchain technology.
During the 5th FinTech Bund Summit in Shanghai on July 8, Wenzhong said that while blockchain is a significant innovation, it is a disservice to “mythologize” the technology. He noted that it’s difficult to bill blockchain as a “revolution” because the idea of multi-entry bookkeeping has been around for centuries.
“Decentralization is not a new trend but a loop, because the earliest human transactions were without central authorities,” he said. “Blockchain is a useful innovation but that doesn’t mean cryptocurrencies, which blockchain has given rise to, are necessarily useful.”
Earlier this year, China’s president Xi Jinping spoke in support of blockchain at the 19th annual conference of the Chinese Academy of Sciences in Beijing. He said that new generation technologies, such as blockchain, are reshaping the global economic structure.
Although China has been open about the possibilities of blockchain, the government takes a less favourable view towards cryptocurrencies. In late 2017, the government banned cryptocurrency trading and initial coin offerings (ICO) in the country. By the end of May this year, Chinese authorities had blocked domestic access to 110 overseas crypto exchanges, while police have investigated 300 criminal cases related to cryptocurrencies.