According to a statement by Zhou Syaochuan, the people’s Bank of China (PBoC) is slowly but surely moving towards regulation of the cryptocurrency. It is known that the Chinese authorities do not recognize Bitcoin as a payment instrument. However, they do not deny that the need for digital currency is inevitable.
The representative of the Central Bank spoke about his views on the digital currency during a press conference at the national Congress of people’s representatives of 2018. He said that the regulations would depend on regional tests and new technologies.
According to him, the Central Bank is studying the digital currency. The Bank will also address confidentiality and security issues in its business processes.
The people’s Bank of China sees the need for cryptocurrencies
Zhou admitted that the digital currency is needed, and probably eventually will replace paper money and coins. He said it was important to be careful about the impact of the financial system and investors on any cryptocurrency.
Zhou also noted that the virtual currency is not integrated with the existing financial products financed by the Chinese economy. He stressed the importance of preventing the introduction of speculative products, pointing to the wild expansion of Bitcoin.
The people’s Bank of China will cautiously move towards cryptocurrency regulation and work with the research and development industry.
The Central Bank does not recognize Bitcoin as a payment instrument. It closely monitors it and strengthens consumer and investor protection and education.