Advisor to the People's Bank of China: "The country did not make a mistake by banning ICOs"

A month after China banned offers of cryptoactive, financial personalities continue to give their opinion about it.

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Yesterday, an advisor to the People's Bank of China said he agreed with the restriction of the government of his country on the Initial Coin Holdings (ICO).

In early September, Diario Bitcoin reported on the controversial decision of the highest financial authority in China: the ban on ICOs. The Central Bank declared that this method of financing is illegal and, as a result, it closed multiple exchanges around the country. Since then the opinions have been numerous and varied, and after a month of the event, the consultant of the People's Bank and professor of economics and finance at the China-Europe International Business School (CEIBS), Sheng Songcheng, has taken a step front to make clear their opinion: that the Chinese government made the right decision.

In an article written for the Caixin newspaper, Songcheng stressed that repression was necessary to stop the chaos generated by the open economy and without any limits. In one of the fragments of the article it says:

I totally agree that ICOs in China have been banned. And, in my view, government actions are aimed at avoiding the risks of digital coins and protecting the interests of traders. Even so, it is necessary for the country to continue to promote the development of Blockchain technology. "

Songcheng emphasized that countless fraudulent schemes have sought legitimacy under the pretext of being coin bids, spreading risks that can not only affect investors, but also the teams that direct legitimate startups. However, the professor says that he agrees that the first step that, in his opinion, are vital for the correct implementation of the regulations is met: that all taxpayers get their reimbursements.

The economist also said that the second step would be a trade of Bitcoin regularized, and although he was not afraid to accept that technological advances have facilitated a series of important systematic reforms to help the development of society, to emphasize that, in its view, technology can never replace the economic policies of a country and that today people do not have a precise understanding of the aspects that differentiate virtual currencies from those emitted by Central Banks, institutions which, according to him, are the only ones that should have the rights to issue and manage the currencies used by citizens.

The teacher is sure that if there is a future where cash does not exist, banks will continue to play the leading role and any other approach would disrupt monetary policies. He therefore suggests that Chinese lawmakers should include new guidelines to those already established, in order for each trader to play with the new rules of the game.

Finally, Songcheng wrote: "Blockchain technology itself is worthy of regulators' encouragement," and stressed the work of area companies such as Alibaba, stating that their vision is one that the government should promote. The economist concluded:

The chaos scattered by the ICOs is already being cleaned and the industry will see a more prudent development ... the community will understand that it is of utmost importance to identify solutions to the problems that arise from this technology. "

Source: CoinDesk, Caixin.
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