PBOC’S Zhou Xiaochuan: No Imminent Regulatory Measures On Digital Currency
BEIJING, March 9, 2018 – Zhou Xiaochuan, governor of China’s central bank, the People’s Bank of China (PBoC), talks about digital currency, bitcoin and regulations on digital currency during a press conference held for the National People’s Congress 2018. He said, there’s no imminent regulatory measures on digital currency. Future regulations are dynamic depending on the technology development and regional trial of digital currency.
Zhou’s main points are as follows:
Digital currency is technically inevitable
1. The issuance of digital currency is under research by the PBoC, it is not a realization of technology application, but aiming to improve convenience and cut costs in retail payment. While security and privacy should be paid attention to.
2. Digital currency is technically inevitable. Paper money and coins may be reduced even one day replaced by digital currency. While be wary of its influence on the financial system and investors.
Do not rush to roll out digital currency
3. Virtual currency is not in line with the current financial products and the spirit that finance serves the substantial economy in China. Do not rush to roll out digital currency. Digital currency is to serve the substantial economy and be cautious of overheated speculation.
4. Speculative products should be halted. The fast wild expansion of bitcoin-like cryptocurrency would bring unexpected impact on financial stability and monetary policy.
5. The central bank is taking cautious step to work with the industry and market on R&D of digital currency.
Central bank doesn’t recognize bitcoin as payment tool
6. While central bank doesn’t like speculative products which forge the fantasy of getting rich overnight.
7. And currently doesn’t recognize bitcoin as a payment tool.
8. Central bank is closely watching bitcoin-like financial products, and beefing up consumer or investor protections and education.
9. There’s no imminent regulatory measures on digital currency. Potential products also need to be tested, and regulations are dynamic depending on the technology development and regional trial result.
As a great power in the world, China is prudent on every decision. The signal the head of the central bank released briefly:
- Blockchain and state-backed digital currency are the trend of future
- Existing problems of bitcoin-like cryptocurrency need to be addressed
- Joint efforts are needed for its future development