No Place in Finance for Blockchain, PBOC Advisor Says

No Place in Finance for Blockchain, PBOC Advisor Says

Liao Shumin

Date: Wed, 04/11/2018 - 15:55 / source:Yicai
No Place in Finance for Blockchain, PBOC Advisor Says
No Place in Finance for Blockchain, PBOC Advisor Says

(Yicai Global) April 11 -- Blockchain has no future in finance as digital currencies are not real money, state-run online news portal The Paper cited an advisor to China’s central bank as saying.

The overuse of virtual currencies will paralyze monetary policies, which are the backbone for economic regulation in countries around the world, Sheng Songcheng, executive deputy director at the China Europe International Business School’s Lujiazui Institute of International Finance, said at the Boao Forum for Asia.

He proposes that blockchain is inefficient and should not be used in finance, as existing payment systems satisfy requirements.

Blockchain’s future lies in customer experience for the real economy, Sheng said. He also believes it can be used in law and technology. It started as the tech behind bitcoin, the best-known digital currency, but has split to become more involved in other sectors, he added.

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Keywords: pboc, BLOCKCHAIN, Finance, Currency, Cryptocurrency, digital currency, Virtual Currency