Blockchains Must Have Centralized Foundation: Chinese Regulator

Blockchains Must Have Centralized Foundation: Chinese Regulator

An official from one of China’s top financial regulatory agencies said that he believes blockchains function more effectively when they are built on a centralized system.

Zhang Ye, director of the China Securities Regulatory Commission’s (CSRC) information center, said on Sunday that the government should devote “great attention” to the development of blockchain technology.

However, Zhang — who made these comments at the “Two Sessions” conference in Beijing during an interview with state media outlet Securities Times — tempered his enthusiasm for this nascent technology by stating that more research needs to be devoted to building a decentralized blockchain on top of a centralized foundation.

The regulatory official did acknowledge that some blockchain applications may require decentralization, but he said that these scenarios should be limited and he did not go into detail about what applications should and should not be centralized.

Zhang’s comments are the latest evidence that China is grappling with whether and how it can reap the benefits of blockchain technology while retaining complete control of the system’s underlying infrastructure.

Last month, the People’s Daily — a state-sponsored media outlet — published an article praising blockchain technology, even as the government has taken measures to snuff out what little volume remains in the country’s once vibrant cryptocurrency trading industry.

Notably, though high-ranking official has also reportedly called for the government to establish a state-controlled digital asset trading platform, sparking speculation that the government could ease prohibitions on cryptocurrency trading, as long as the markets are directly controlled by the government.

Featured image from Shutterstock.

06.03.2018 / 08:37 87
China is Blocking Cryptocurrency Exchanges on Social Media: Local Report China is Blocking Cryptocurrency
Regulators in China have begun blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers
Blockchain Needs Some Centralization, Says Chinese SEC Official Blockchain Needs Some Centralization,
An official from one of China's financial regulators argued at the "Two Sessions" conference in Beijing on Sunday that blockchains are better if not
Bank of England Says Cryptocurrencies Will Fall, With False Claims Bank of England Says Cryptocurrencies
Bank of England Governor and consistent critic of cryptocurrency Mark Carney once again called for regulatory oversight of the market in a speech at
Member Of Chinas Main Political Advisory Proposes National Crypto Trading Platform Member Of Chinas Main Political
Wang Pengjie, a member of Chinas top political advisory board, has recently suggested that China create its own regulated crypto exchange. A member
China's Biggest Political Event Sees Talk of Blockchain's Potential China's Biggest Political Event Sees
Chinese policy advisors from across various sectors have been weighing in on domestic blockchain development during the first days of an ongoing
Chinese Universities Are Pursuing Blockchain Patents Chinese Universities Are Pursuing
Several top-tier public universities in China are stepping up efforts to patent blockchain applications developed on campus. New data published on
Comments (0)
Add a comment
Comment on