PBoC’s Governor：Highly encourages Blockchain innovation but risks should be considered
On the sideline of China’s most important national conferences, namely National People’s Congress(NPC) and Chinese People’s Political and Consultative Conference (CPPCC), the governor of PBoC, Zhou Xiao Chuan has held a conference answering questions from the press, which is the best time for media to ask questions about financial and monetary policies to Mr Zhou. Though press did not mention Bitcoin, Mr. Zhou has explicitly mentioned Blockchain technology when he answered a question related to the non-banking sector payment companies, saying that Fintech including Blockchain is highly encouraged by PBOC, though the unpredictable impacts of Blockchain will mean regulation is necessary.
Governor Zhou is taking questions from the media
Regulation is not to constrain innovation at first place
Mr Zhou’s verbatim answer to a question related non-banking payment industry.
“I want to add something. Firstly, PBOC believes that the development of technology might transform payment industry, which is actually a sort of progress as there will be more means of payment. PBoC highly encourages fintech development and will be willing to cooperate with different sectors to promote it. Another point that I want to emphasize is that the development of digital currency and Blockchain technology will bring impacts that people now can hardly envision.”
Therefore, as what Deputy Governor Mr. Fan has said, risk prevention should be coupled with encouragement. The risky behaviors of an industry should be avoided. However, it does not mean PBoC will constrain the development of a technology at the very beginning. It means to regulate problems that emerges during its process of development…”
The answer reflects PBoC’s attitude to new technology: it will support you as long as you are beneficial to the society and economy. However if you bring any harm beyond my tolerant line, regulation will soon come.
It’s also worth-noting that Bitcoin exchanges have not even be mentioned one during the whole 2-hour-long press conference, though Bitcoin and Blockchain community is anxiously waiting for PBoC to give its guidance on Bitcoin exchanges, especially on when Bitcoin withdrawal is available. The reason is simple: there are more important questions like capital outflow, interest rate floatation, and private loans worth being asked in this previous period of time.