People’s Daily: Blockchain Will Evolve Into A Tool of Regulation
26 February Beijing- An article on the People’s Daily, the #1 official media outlet in China, says the blockchain technology will eventually evolve into a tool of regulation. Message broadcast on the newspaper could be interpreted as the voice from the top authority. Author is Dou Jiali from Peking University Guanghua Financial Technology Laboratory.
Merits of blockchain technology is elaborated:
“Blockchain will significantly reduce the cost of transmission of values, which will greatly liberate the productive force.”
And the shortcomings:
“Currently, the bottomlayer technology of blockchain is not yet mature and the infrastructure is not perfect.”
Dou points out that current blockchain network are “isolated” as their native tokens could only be transferred in its home network. Many blockchain projects are therefore being separated, making more “islands of value”, which is in contradiction to the vision of “internet of values”.
However, such weakness happens to offer a window for China to explore the technology more thoroughly so that the nation could get an “invincible” position in the world.
“ If we hurried to build a fortress on a loose base, it is highly likely that the fortress will fail.”
The key is to implement regulation through blockchain technology itself.
The healthy development of the blockchain industry relies on scientific regulation.
Some bubble projects launched large-scale marketing campaigns to attract less-educated investors.
“Not only it is harmful to the industry itself, but it also brings hidden risks to social stability.” The “ICO Ban” released on September 4, 2017 by 7 ministries has defined ICO as “illegal public financing.” This is a very timely regulatory intervention. it also sets a good reference for the follow-up supervision.”
Unlike the common conception that bitcoin is censor-proof, Dai believes that Blockchain is tool of regulation itself.
“In fact, they are not in direct conflict. The blockchain technology will eventually evolve into the “regulation integrated into technology” model. Features inherent in the blockchain allows easier regulatory access and will eventually resolve the conflict between blockchain and regulation.”
It’s a very optimistic forecast.
BTW, there have been a few discussions on anonymous coins in the community.