Blockchain is Useful, “Mythologizing” It Is Not: Chinese Regulator

The top Chinese regulator has warned the enthusiasts of cryptocurrency not to mythologize blockchain technology and cryptocurrencies. In a cautioning tone, he also stated that the underlying technology might be so innovative, but he was so futuristic about cryptocurrencies.

The head of the International Department of China Insurance regulatory and Banking commission, Fan Wenzhong said that Blockchain technology might be so innovative, but he warned about its mythologizing.

Mr. Wenzhong made these comments at the sidelines of the 5th Fintech Bund Summit in Shanghai on July 08, 2018.

He added,

“Blockchain is a useful innovation, but that doesn’t mean cryptocurrencies, which blockchain has given rise to, are necessarily useful.”

He said that decentralization was not an entirely new concept. He believes that blockchain technology has been hyped as the next big revolution and this is worrying. It has become a buzzword in recent times, and this could be worrying if it fails to live up to this hype.

China has recently adopted a staunch stance against blockchain and cryptocurrencies. As it has also shut down all the local cryptocurrencies exchanges and cracked down all the mining operations which were carried out in China. And has already ban against ICOs.

The official stance of the Chinese government is to encourage blockchain technology. But it has an extremely cautious approach for cryptocurrencies because it is worried that they could be used to finance illicit activities.

China was one of the earliest adopters of cryptocurrency and blockchain technology but it is growing anti crypto with each passing day. South Korea and Japan have also adopted a tough regulatory framework for cryptocurrency trading.

About Blockchain

A blockchain is a digitized, decentralized, public ledger of all cryptocurrency transactions. Constantly growing as ‘completed’ blocks (the most recent transactions) are recorded and added to it in chronological order, it allows market participants to keep track of digital currency transactions without central recordkeeping. Each node just like a computer which is connected to the network gets a copy of the blockchain, which is downloaded automatically without doing anything.

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