Blockchain in Asia: Needs more debate

Blockchain is still a hot topic in both the tech and biz world. Asia is no exception, as this year's Boao Forum for Asia has a dedicated session for this technology.

Blockchain is not only the core tech of Bitcoin and other cryptocurrencies, but also a powerful tool for many other businesses.

The apparently confusing tech is basically a secured container of data in which changing the content requires consensus by everyone using it.

Advanced encryption is employed to ensure the integrity of this storage. And it does not need a bank or any other company to supervise.

Blockchain, by definition, seems to be a good way to store data. But not every country in Asia welcomes the tech without hesitation.

Policy difference

Virtual currency based on blockchain can be a rival to government/bank currencies, and may bring instability to the economy. China banned the trade between e-coins and renminbi, and called for shut-downs of major trading centers in the country.

Initial coin offering (ICO) is also banned in China over scam concerns.

But Beijing is not all against the concept of blockchain and e-coins, as some leading companies and researchers last year started looking for a way to make the tech safe and useful for Chinese people.

South Korea also issued an array of regulations on cryptocurrency, banning anonymous trading and imposing high tax over exchanges.

With that said, some other Asian powers like Japan and Singapore have chosen to let the business develop on its own for now.

What is the best way to regulate cryptocurrency? It seems like Asian countries can't agree on this yet.

The bubble

A lot of experts are arguing that there's a bubble in blockchain currencies. Look at the price of Bitcoin, and you'll find that it swings up and down wildly compared to other assets.

One Bitcoin was worth less than 1,000 US dollars in early 2017, before it surged up to nearly 20,000 US dollars at the end of the same year.

And now the value is roughly 8,000 US dollars.

If the price of a government-backed currency was as unstable as this, the country would likely face grave issues.

But the Bitcoin community is all about making a profit.

It's hard to say whether Bitcoin is a good or bad currency at this point.

As for the blockchain technology, it has yet to establish another field to pursue. Perhaps the finance or gaming industries might be interested in the future, but currently there are no new announcements.

So how will Asian countries deal with this powerful tool in the future? Blockchain experts will attend the Boao Forum for Asia 2018 on April 10 to discuss important issues around the technology. Here's the guestlist:

• Chen Lei, CEO of Xunlei Limited;

• Hong Won-pyo, CEO of Samsung SDS;

• Li Lihui, former head of Bank of China;

• Mary Ellen Richey, Vice Chairman of Visa Inc.;

• Qin Yi, founder of blockchain research of Deloitte China;

• Sheng Songcheng, standing vice-president of the Lujiazui International Financial Institute.

(CGTN)