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The Chinese central bank has called on the government to strengthen oversight on loans and "speculative" investments in the blockchain sector.
The research office of the People's Bank of China, the central bank of the country, has published a working document entitled "What can and does not do a blockchain?" Tuesday.
An initial analysis of the CCN China working document may reveal that the central bank's research arm is studying the impact of the blockchain and various projects aimed at commercializing decentralized technology in society.
On time, the central bank's authority called for a measured view on blockchain technology. "In the first place, do not exaggerate the function of the blockchain", reads an excerpt translated from the working document. Some industrial practices in the years following the advent of blockchain technology have "demonstrated that some blockchain applications are not feasible", particularly in the financial sector.
"So far, no technological innovation has had a disruptive impact on the financial system, and blockchain is no exception," he added.
In addition, the PBoC research unit also invited the relevant Chinese government agencies to improve the supervision of funding in the sector after claiming public funding through the violation of laws by ICOs.
Regarding the context, the Chinese authorities including the PBoC have issued an absolute ban on all ICOs in the country.
The PBoC working document, translated by CCN China, stated:
Currently, the bubble in the investment and blockchain financing sector is obvious. Speculation, market manipulation and even violations of laws and regulations are common, especially for token projects involving public offer transactions. The relevant government departments should strengthen supervision and prevent financial risks.
Today's document follows a public announcement by the PBoC in September that warned consumers and investors to be wary of the risks involved in trading cryptocurrency and early coin offerings (ICOs).
Hat tip to CCN China.
PBoC image from Shutterstock.
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