PBOC Media: Bitcoin and Blockchain Should Be Treated Separately
Today the Financial News, a media under PBOC, reports that shutting down exchanges is not going to affect the development of blockchain technology. The article justify the “Exchange Ban” as “an important measure to maintain financial security and stability” and cryptocurrency and blockchain should be treated separately. The authority still favors the development of blockchain technology. Meanwhile, Bitkan, a Shenzhen-based blockchain startup founded in 2013, announces service shutdown by 30 September.
The report points out the Bitcoin and other cryptocurrencies has become an “ally” of crimes and links to all kinds of illegal activities like: smuggling, drug trafficking, ammunition, porno, assassination etc. Bitcoin has become the preferred payment tool of “Dark Web”.
The Financial News posted another article not long ago, saying that private digital currency threatens financial stability.
Sun Guofeng, Director of the Institute of Finance of People ‘s Bank of China, told reporters:
“This does not prevent the relevant financial technology companies, industry agencies, technology companies from studying blockchain technology. Blockchain itself is a good technology. Therefore, we must separate blockchain technology from ICO. There is a wide range of application for blockchain technology, including some social management cases. Blockchain is not a equivalent of ICO. We need to broaden the horizons of research and development of blockchain technology.”
Sheng Soncheng,former Director of Survey and Statistics Division of the People ‘s Bank of China, said:
“Although ICO is banned and virtual currency trading halted, blockchain technology itself is still encouraged.”
Yangdong, Deputy Director of Law School of People’s University of China, said:
“We must clearly distinguish Bitcoin and other virtual currency from blockchain technology. Shutdown of virtual currency exchange does not conflict with current promotion of blockchain research. The rejection of risk does not mean that we refuse to innovate. By cracking down pyramid schemes, illegal fund-raising and other financial crimes in the name of blockchain, we could provide a healthy and good financial and technological ecological environment for blockchain development. “
It seems that the authority doesn’t want to stall blockchain development in China. However, Bitkan, the producer of 1st Chinese Bitcoin documentary, announce shutdown by 30 September. The news triggers a wave of condolence as the application has been feeding price to the community since 2013.