China, Central Bank reassures on the blockchain: “It’s not a threat”

07/11/2018

 

Cryptocurrencies and blockchain lack value and credibility guaranteed by sovereignty

 

The blockchain does not pose a threat to the global financial system. To confirm it (again) is a document prepared by the Chinese Central Bank, which at the same time stresses that this phenomenon must have a strict surveillance by the governments.

“So far, there has been no technology innovation that could overwhelm the modern financial system, and blockchain will not be an exception,” the article concluded. “Cryptocurrencies lack value and credibility granted by sovereignty, therefore cannot jeopardize or replace legal currencies”.

 

The investment environment of the Chinese blockchain seems to be full of “bubbles” and illegal activities are “common”

 

The report elaborated by the People’s Bank of China, which is entitled “What the blockchain can or cannot do“, is part of the continuous control on the blockchain. However, the document is widely regarded as an important sign of Beijing’s official attitude towards the country’s blockchain and crypto communities.

In addition to outlining some key blockchain concepts – including “consensus”, “without trust” and “token” – the report dealt with governance and security, as these aspects relate to the blockchain industry.

The investment environment of Chinese blockchain, it is specified in the report, seems to be full of “bubbles” and illegal activities are “common”. Precisely for this reason, therefore, “government bodies shall strengthen the supervision, and prevent financial risks“.

 

Institutions supported by the state are carefully analyzing the blockchain phenomenon

 

The Chinese cybernetic administration, at the end of October, had already published a draft on the regulatory policy of the blockchain. The document proposed that blockchain service providers collect information on their users’ names and provide them to government authorities. All this, however, has sparked heated discussions on the principle of decentralization between the communities.

In the meantime, however, the institutions supported by the state are carefully analyzing the phenomenon, so much so that the Central Bank holds as many as 33 blockchain patents. In October, however, the People’s Daily, thanks to a state funding, launched its own blockchain section.

 

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