Chinese Securities Commission official: blockchain needs centralization

Chinese Securities Commission official: blockchain needs centralization


A Chinese official from the financial department, speaking at a Beijing state conference on Sunday, said that a completely decentralized blockchain is not the most optimal solution. This is written by CoinDesk.

Speaking at the People’s Political Consultative Council of China as a policy advisor, the head of the technology department of the Chinese Securities Regulatory Commission, Zhang Ye, called on China’s public sector to use advanced technologies such as blockchain to provide state services.

But with one caveat – although Zhang believes in the potential of the detachment, it is necessary to use a centralized infrastructure to fully realize its capabilities.

“Arguments of defenders of the complete decentralization of the detachment do not have a firm ground, because the blockchain itself is a centrally developed software. The same applies to the public key infrastructure, which remains an important element of the blockchain,”  Zhang said in an interview with the state-run Securities Times, which highlights the Chinese securities industry.

According to Zhang, in some cases, decentralization can really do more good, but he doubts that absolutely all the detachments should be decentralized.

“It is important to explore how to achieve decentralization through a centralized infrastructure,”  he continued.

Similar words sound from the mouth of Chinese officials is not the first time.

So, in October last year, officials from the People’s Bank of China (including Yao Qian, director of the laboratory at the central bank investigating digital currencies) outlined their vision of a centrally-issued and managed digital currency, based on decentralization.

In January, Vice-President of the People’s Bank of China, Fan Yifei went further and presented several scenarios that allowed removing from the centrally-issued digital currency the standard functions of public blockchains, such as peer-to-peer and anonymity.

In addition, according to Li Lihui (former president of the Bank of China, and now – head of the blockchain investigation department at the Chinese National Association for Financial Activity on the Internet), many of the current blockchain projects are designed, in fact, using a variety of centralized elements and without full decentralization.

Leave a Comment

Your email address will not be published.

You may also like

Hot News