The People’s Bank of China made a statement, reporting that the regulator does not consider cryptocurrency as a means of payment, classifying them as “unreliable” financial products, the spread of which can lead to negative consequences for the traditional financial system.
“Currently, all the cryptocurrencies are very quickly entering the market. But they are not stable, plus they are not reliable. The spread of digital coins can adversely affect consumers, and this is also dangerous for the financial market”, Mr. Zhou Xiaochuan, head of the Chinese regulator, said. The official reminded that China has banned the conduct of ICO and direct exchange of transactions with cryptocurrency and the national currency.
“The regulator does not recognize all these virtual coins, as well as does not allow the possibility of their introduction into the financial system as a means of payment,” the official said. In this case, Zhou Xiaochuan emphasized that the new technologies themselves can be useful, with their proper use. “We need to abandon the speculative instruments that are used today for a quick profit. Users should get an effective, safe and reliable product. You can not break the existing financial system and rules,” Zhou Xiaochuan said.