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Top China regulator warns against ‘mythologising’ blockchain technology

Regulator’s remarks echo official government stance of cautious welcome for blockchain, while playing down cryptocurrencies

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A top Chinese regulator has acknowledged the innovative aspects of blockchain but warned against “mythologising” the technology. Photo: AFP

A top Chinese regulator has acknowledged the innovative aspects of blockchain but warned against “mythologising” the technology behind cryptocurrencies, echoing the government’s mixed feelings about the booming but shadowy sector.

“We all think blockchain is an innovation with significant meaning – correct. But we shouldn’t mythologise blockchain,” said Fan Wenzhong, head of the international department of the China Banking and Insurance Regulatory Commission, during a fintech summit in Shanghai over the weekend.

Speaking at the 5th Fintech Bund Summit on July 8, Fan noted that it’s difficult to bill blockchain as a “revolution” because the underlying idea – multi-entry bookkeeping – has been around for centuries.

“Decentralisation is not a new trend but a loop, because the earliest human transactions were without central authorities,” he said, according to a transcript from the event organisers.

Blockchain is a decentralised, secured public ledger of data transactions, mostly used by cryptocurrencies such as bitcoin.

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