Felix Hufeld, the President of Germany’s financial watchdog (BaFin) has compared blockchain technology to the Internet, and has called decentralized applications (dapps) potentially revolutionary.
In a speech published by the regulator, the head of Europe’s biggest regulator, who was speaking during an event held in Berlin last week, tried to expand on the regulator’s view of blockchain and cryptocurrencies.
Hufeld argued that if the current hype surrounding Bitcoin and other cryptos as well as ICOs was not a bubble, then blockchain and dApps have the ability and power to be revolutionary. He explained further:
These apps are not only safe from failures of individual computers or providers, they also promote the development of a ‘blockchain economy.
The BaFin head gave examples of how blockchain has been used in different parts of the world for various reasons. He gave an example of Estonia – which he said is the most digital country in the world – where he claimed that blockchain was already being used in various public administration services.
Hufeld said that blockchain goes beyond cost saving, arguing that the technology is being used to develop new business models every day, as developers are finding additional uses for blockchain in different sectors. He vouched for the technology in terms of its ability to make cross border payments and financing even easier for smaller enterprises.
The speech comes days after Hufeld stated that he does not want to jeopardize innovation in blockchain through unwarranted regulations. However, in the speech, Hufeld also stated that the regulators were keeping an eye on consumer protection issues, on issues such as the initial issue of new tokens and ICOs. Indeed, BaFin issued a report in April stating that it was enhancing regulations on crypto trading due to money laundering issues and other financial crimes.
CoinDesk reports that Hufeld also showed support for blockchain by issuing guidelines in February for indicating when and how tokens issued during ICOs become securities. He said that a case-by-case approach would be applied to determine the legal status of individual tokens.
Widespread Backing of Blockchain by Heavyweights
Hufeld joins a league of other heavyweights in financial and other sectors, who have thrown their support behind blockchain technology.
At a blockchain conference in China recently, Jack Ma, who heads e-retail giant Alibaba, supported blockchain, saying that the technology had the potential to impact almost every aspect of social and economic life in the world. The e-commerce mogul stated that he has carefully studied blockchain and concluded that it has the potential to enhance efficiency in his ventures, which is the reason he is dedicating many of his resources to enhancing blockchain development.
Similarly, Bill Gates has said that although he does not believe in Bitcoin and other crypto, blockchain technology has the potential to change various aspects of almost all sectors of the economy.
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