China should adopt a standardized approach to blockchain development, secretary of Beijing's Municipal Bureau of Finance Huo Xuewen said recently.

In a speech published by Sina Finance, Xuewen reflected on the technology and its various applications and experiments being pursued by a number of governments and financial institutions, CoinDesk reported. He noted that the current applications of blockchain technology are mostly centered on credits, payments, and trading.

He called on the government to adopt a standardized approach to blockchain development while highlighting the various shortcomings of the technology.

Xuewen said that while blockchain technology could bring convenience and efficiency, and help reduce costs, it can become a source of illegal financial activities as there are no clear rules and norms. He noted that the technology itself in the early stages of development, adding that there are still bottlenecks.

“The application of the blockchain scene has no uniform standards, the lack of mature cases, regulatory regulations are lagging behind, which require a process of evolution and development”, Xuewen added (loosely translated).

He further stated that the technology is used to create a wide range of virtual/digital currency, which is not backed by any financial institution and lack credibility. Xuewen said that many criminals under the guise of the blockchain concept to create a digital currency, actually are involved in ponzi schemes.