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Governor of China's Central Bank speaks against speculation in cryptocurrencies

Mar 12, 2018 Posted /  6751 Views

Governor of China's Central Bank speaks against speculation in cryptocurrencies

Zhou Xiaochuan, the People’s Bank of China (PBOC) governor has again spoken about cryptocurrencies this week. The Central Bank of China’s governor says that he feels that speculative products like cryptocurrencies are not good for the country and the bank does not acknowledge or accept digital currencies like bitcoin in any form. He ascertained that this is the official bearing by the government and the bank is evaluating all projects related to cryptocurrencies and initial coin offerings. It is noteworthy that Zhou has made it apparent enough that the bank is ramping up regulatory actions against the crypto-space.

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PBOC is not in favor of getting rich overnight

PBOC has always had an exciting association with the newest cryptocurrencies and token sales that are taking place within the boundaries of China. Not long before, most of the transactions and trade volumes of Bitcoin was emerging from the Mainland only, and the nation was considered the highest grossing place for blooming cryptocurrency industry. Nevertheless, there is enormous scenario change taking place right now as China's central bank has absconded the sector much with a ban on crypto-trading platforms and ending ICOs from divulging its roots in the country.

This week Zhou in the press conference said that National People's Congress, that both public and private blockchain based cryptocurrencies are being monitored and the country did not recognize them and elaborated its stance.

“Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors,” Zhou told the media.

"We don’t like cryptocurrency products that make huge opportunity for speculation that gives people the illusion of getting rich overnight."

Inevitable but needs Technical refinement

Zhou does say that virtual currencies are unavoidable, but he considers that cryptocurrencies have deviated from the original course of enhancing financial assistance and diminishing the cost of the payments exchange. Zhou believes a lot of consideration is now given to “speculation” and how to get rich overnight schemes. Zhou opined that there is yet another area that demands to be looked after is privacy and security and insisted that these issues are directly tied to crypto-payment rails. Zhou asserts that cryptocurrency projects should promote:

Convenience, rapidity and low cost in a retail payment system while taking into account security and protection of privacy.

Hint at a PBOC-Issued Cryptocurrency?

So, now if the governor says that there should not be speculative digital currencies, local media at the National People’s Congress speech speculated that Zhou was hinting at a state-based cryptocurrency product. Zhou’s comments disclosed that blockchain and digital currency solutions would proceed to be in fashion, but contemporary technical issues need to be fixed. Most importantly, Zhou assumed that public officials and Chinese agencies would associate for more research and development.   

“The emphasis should be to serve the real economy — [Cryptocurrencies] should not conflict with the current financial order,” the PBOC governor emphasizes.

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Tags: China Cryptocurriences Governor Central Bank bitcoin People’s Bank of China

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