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Is China now Reconsidering its Earlier Decision to Ban Cryptocurrency in the Country? Chinese Regulator Opens Up

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So much has been happening in China lately with regards to cryptocurrency and the blockchain technology in general. This explains the recent proposal by an official from one of the top regulatory agencies in China, that there is a need to have a centralized system that will see blockchain function more efficiently.

Blockchain Technology Needs the Government’s Attention Now

According to Zhang Ye, the Director of the CSRC (China Securities Regulatory Commission), there isa  need for the government to turn its attention more to the rapid development of blockchain technology. He made these comments during the “Two Sessions” meeting that happened in Beijing recently. Despite harboring these sentiments however, he told the state media that there is still need to devote more research in building a decentralized blockchain, even as the foundation for a centralized system are laid.

Is Building a Decentralized System the Way to Go?

His reasoning for such a suggestion was that looking at the whole aspect from a technical point of view, there is no validity in the absolute decentralization of blockchain because on its own, blockchain is just software and as always, software ought to be centralized in order to have a valid point of reference. As such, he says now the task ahead would be to look for the most ideal system through which a decentralized system can be built.

The regulatory official further notes:

Admittedly, some application scenarios need to be decentralized, but whether all scenarios need to be decentralized requires careful consideration,

Based on Zhang’s comments, it is clear that China is at crossroads in terms of whether or not to embrace this technology in totality. They realize that they are bound to reap the benefits of blockchain technology but at the same time they ought to retain full control of the system. As such, China can only be at ease if they can find a way to understand the underlying structure behind the technology.

Only last month, a state-sponsored media company, People’s Daily, published an article that clearly praised blockchain technology. This comes in the wake of government’s attempt to derail the effort that had been made in the once vibrant cryptocurrrency market in the country.

What do you think about China’s recent approach to blockchain? Let us know your thoughts in the comments section below.

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