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China’s PBOC Governor Speaks Against Cryptocurrencies

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The People’s Bank Of China (PBOC) has had an interesting relationship with emerging cryptocurrencies and token sales. At one time, a vast majority of BTC trade volumes and transactions originated in China. Since then, China’s central bank has banned crypto-trading platforms domestically and has stopped ICOs from taking place within the country. This week during a press conference held for the National People’s Congress, the PBOC governor Zhou had a lot to say “Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors,We don’t like cryptocurrency products that make huge opportunity for speculation that gives people the illusion of getting rich overnight.”

Zhou does say that digital currencies are technically inevitable, but he believes cryptocurrencies have veered off from the original goals of aiming to improve monetary convenience and cutting medium of exchange costs. Zhou thinks a lot of attention is now based on “speculation” and get rich quick schemes. Another area that needs to be attended to in Zhuo’s opinion is privacy and security issues tied to these payment rails. Zhou states that cryptocurrency projects should promote:”Convenience, rapidity and low cost in a retail payment system while taking into account security and protection of privacy.”

Local news outlets and those who attended the National People’s Congress speech felt that Zhou was referring to a nation-state issued cryptocurrency product. Zhou’s statements reveal that blockchain and digital currency solutions will continue to trend, but existing technical problems need to be fixed. Moreover, Zhou hopes that public officials and Chinese agencies will partner together for further research and development.

 

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