The head of China’s Banking and Insurance Regulatory Commission International department warned against “mythologizing” blockchain technology.
In a speech during the 5th Fintech Bund Summit held on July 8 in Shanghai, Fan Wenzhong explained that even though blockchain technology is “an invention with significant meaning,” it does more damage than good to “mythologize” it.
Fan admitted that it difficult to acknowledge blockchain as a “revolution” since the idea of multi-entry bookkeeping has been around for hundreds of years. Fan explained, “Decentralization is not a new trend but a loop, because the earliest human transactions were without central authorities.” Fan repeated the government’s stand on cryptocurrencies, saying:
“Blockchain is a useful innovation but that doesn’t mean cryptocurrencies, which blockchain has given rise to, are necessarily useful.”
China has implemented a severe approach towards cryptocurrencies. In report by the South China Morning Post, regulators have banned domestic access to a total of 110 cryptocurrency exchanges overseas. Meanwhile, police have investigated around 300 criminal cases involving digital currencies.