Felix Hufeld, chief of Germany's financial watchdog, has said blockchain technology is "Revolutionary" and its applications could turn the entire financial sector "Upside down."
Hufeld, who is president of the German Financial Supervisory Authority, made the remarks during a speech at an event in Berlin last week in which he described the regulator's thinking on bitcoin and blockchain.
Despite the current hype around the bitcoin price and the boom of initial coin offerings, he said, blockchain's ability to power distributed applications "Could actually be revolutionary."
"These apps are not only safe from failures of individual computers or providers, they also promote the development of a 'blockchain economy.'".
Further, the BaFin head said blockchain applications have promise in areas that lack "An effective control mechanisms or trustworthy institutions" such as in foreign trade or development aid.
The speech follows remarks by Hufeld in April, in which he stated that he does not want to "Kill innovation" in blockchain, though his agency is beefing up efforts to regulate cryptocurrency trading over money-laundering concerns, according to a report at the time.
BaFin also issued new guidelines in February outlining how and when it would consider tokens issued during ICOs to be securities, saying it would take a case-by-case approach in determining the legal status of individual tokens.
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies.
CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Blockchain Is 'Revolutionary,' Says German Finance Regulator Chief
Published on Jun 13, 2018
by Coindesk | Published on Coinage
Mentioned in this article
Louis Vuitton Owner LVMH Is Launching a Blockchain to Track Luxury Goods
Luxury brand conglomerate LVMH, owner of the iconic Louis Vuitton label, is preparing to launch a blockchain for proving the authenticity of high-priced goods, CoinDesk has learned.
TrueUSD Stablecoin Holders Can Get 'Up to 8%' Interest Via CredEarn
Holders of the dollar-pegged stablecoin TrueUSD can now leverage their funds to generate returns under a new partnership between the token's developer TrustToken and crypto lender Cred.
Binance Tightens Compliance, Turning to IdentityMind for KYC
The world's largest cryptocurrency exchange Binance is moving to boost compliance and data security through a new deal with Medici Ventures portfolio firm IdentityMind.
E-Commerce Giant Rakuten Wins License for New Crypto Exchange
Japan's top financial watchdog has granted a license to a cryptocurrency exchange being relaunched by e-commerce giant Rakuten.