Blockchain Needs Centralization, Chinese SEC Believes

An official from one of China's financial regulators believes that blockchains are better without full decentralized
06 March 2018   528

A Chinese official from the financial department, speaking at a Beijing state conference said that a completely decentralized blockchain  is not the most optimal solution. This is reported by CoinDesk.

Speaking at the People's Political Consultative Council of China as a policy advisor, the head of the technology department of the Chinese Securities Regulatory Commission, Zhang Ye, called on China's public sector to use advanced technologies such as AI and blockchain to provide state services.

But with one caveat - although Chiang believes in the potential of the blockchain, it is necessary to use a centralized infrastructure to fully realize its capabilities.

Blockchain's advocates for absolute decentralization have no solid ground, because [blockchain] itself is a software developed in a centralized way. So is the public key infrastructure, which remains an important feature adopted by blockchain. The key is to explore how to achieve decentralization through a centralized infrastructure.
 

Zhang Ye

Head of the technology unit, China's Securities Regulatory Commission

According to Zhang, in some cases, decentralization can really do more good, but he doubts that absolutely all the blockchain should be decentralized.

In addition, according to Li Lihui (former president of the Bank of China, and now - head of the blockchain research department at the Chinese National Association for Financial Activity on the Internet), many of the current blockchain projects are designed, in fact, using a variety of centralized elements and without full decentralization

Australian Company to Issues Crypto Backed Loans

In case of default, financial company named Helio may sell cryptocurrency to cover losses
10 December 2018   89

Helio from Melbourne began issuing loans secured by cryptocurrencies, Bitcoin.com reports.

The service allows Helio clients to borrow from 1000 Australian dollars ($ 720) on the security of cryptocurrency assets. At the moment, the company accepts Bitcoin, Ether, Litecoin and Ripple.

Helio client crypto assets are stored in a secure wallet, company representatives say. In case of default, the company may sell cryptocurrency to cover losses.

Helio has a credit license (ACL) issued by the Australian Securities and Investments Commission (ASIC). As stated by the company's founder, John O’Shy, Helio was the first licensed organization in Australia to launch this service. According to him, the country has a developed cryptocurrency market, however, suppliers who want to provide loans secured by digital assets are not enough.

In June, the Japanese corporation Abic Corporation began to issue loans secured with Bitcoin