“The Development of Digital Currency is Technologically Inevitable,” – People’s Bank of China’s Governor

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Today, the China Daily reported that the People’s Bank of China’s (PBoC) head, Zhou Xiaochuan, mentioned that authorities are still not considering Bitcoin as a legitimate payment method and are not pressing to make a national cryptocurrency. 

M. Xiaochuan expressed the bank’s position sincerely,

“We do not currently recognize Bitcoin and other digital currencies as a tool like paper money, coins and credit cards for retail payments. The banking system does not accept it.”

PBoC’s governor also said during a press conference at the annual National People’s Congress that financial institutions “must prevent substantial and irreparable damages” to the current domestic economy.

Further more, he mentioned that the advancement of digital currency is “technologically inevitable” and to make sure it does not propagates too fast, some applications of the technology should be controlled,

“If they [Blockchain technologies] spread too rapidly, it may have a big negative impact on consumers. It could also have some unpredictable effects on financial stability and monetary policy transmission.”

Last week, China took additional security measures by blocking the access to offshore cryptocurrency exchanges, after also restricting the access to domestic exchanges.

Japan is also moving forward with security concerning cryptocurrency exchanges because of recent hacks, notably Coincheck’s heist.

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