[2018-03-10] China Will Move Slowly to Regulate Cryptocurrency: Central Bank Gov

[FollowSynergy]

While it does not recognize bitcoin as a payment tool, China recognizes that digital currency is inevitable and is in no hurry to regulate cryptocurrencies, according to Zhou Xiaochuan, governor of the country’s central bank, the People’s Bank of China (PBoC).

The central bank official gave his views on digital currency during a press conference at the National People’s Congress 2018, according to 8btc, a Chinese industry news site.

He said regulations will depend on regional trials and new technology.

The central bank is researching digital currency, he said. Issuing digital currency does not depend on a technology application, he said, but on the ability to reduce the costs and improve the convenience of retail payments. The bank will also consider privacy and security in its actions concerning cryptocurrency.

Digital Currency Is Inevitable

Zhou acknowledged that digital currency is inevitable, and is likely to eventually replace paper money and coins. He said it is important to be wary of the financial system’s and investor influence on digital currency.

Virtual currency is not integrated with existing financial products or the spirit that finance serves China’s economy, Zhou said. Hence, he cautions against the government rushing into digital currency.

Zhou stressed the importance of preventing the introduction of speculative products, pointing to bitcoin’s wild expansion. The expansion of a bitcoin like cryptocurrency would have an unexpected impact on monetary policy and financial stability.

The central bank, Zhou said, is moving cautiously with cryptocurrency and is working with the industry on research and development.

The central bank does not recognize bitcoin as a payment tool, and it is carefully watching bitcoin like financial products and strengthening consumer and investor protection and education.

Promising products need to be tested, Zhou said.

Government Crackdown Continues

Regulators in China recently began blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers located on the mainland.

On Tuesday, Beijing-based media outlet Caixin reported that local authorities had forced social messaging platform WeChat to shut down accounts belonging to select cryptocurrency exchanges in a bid to further restrict the ability of mainland residents to trade cryptocurrencies.

China had forced the closure of domestic cryptocurrency exchanges that offered fiat-to-cryptocurrency trading pairs last September, but some investors told Caixin that they were still able to access the offshore platforms. Other traders moved to over-the-counter and peer-to-peer platforms, often using social media to find trading partners and execute transactions.

https://www.ccn.com/china-will-move-slowly-to-regulate-crypto-central-bank-governor-says/

[davis196]

Your title is a bit misleading,OP.China will not regulate cryptocurrencies.The PBOC wants to create a state-backed crypto,while they continue to ban crypto traders,exchange platforms and miners.
Their plan is totally stupid and pointless.It would be cheaper for the chinese communist government  to adopt bitcoin or some altcoin ,build a big government owned cryptocurrency marketplace and invest in mining hardware.Building a blockchain from scratch and inventing a brand new cryptocurrency will be a failure ,in terms or costs and security.

[1Referee]

Building a blockchain from scratch and inventing a brand new cryptocurrency will be a failure ,in terms or costs and security.

Even if so, if that helps China maintain its power, and even gain more power in the long run, everything will be more than worth it for them. At some point each and every central bank will have its own crypty currency developed. It's just a matter of time. Don't forget that if every bank in the future is going to process payments and maintain balances based on blockchain currencies or tokens, the government will more than ever gain a superior level of control, where they will be able to track you and your funds instantly everywhere in the world, regardless of the bank and country the funds are sent to. That is the whole plan. It's something that gets me worried, but on the other hand also not, because I have a large part of my wealth sitting in Bitcoin already.

[Irvinn]

Given a position where China does not recognize bitcoin and other crypto currency as a means of payment and prohibits any transactions with it, but recognizes that the currency is inevitable and may even replace paper money soon, it is unclear what they are going to do next in relation to the crypto currency. After all, they do not even hurry to introduce their centralized national currency. Then what in China are they going to do with the crypto currency? After all, just ignore it will not work, and judging by the statements of the head of the People's Bank of China, they realize it there.

[Slow death]

Regulators in China recently began blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers located on the mainland.

these Chinese people suffer in the hands of these leaders of their country and if they do not fight for their rights to be respected, so that they have democracy, then they are condemned to this regime where everything they do is controlled by the government. What is most annoying are the African leaders have made agreements with these Chinese and as a result many of the forest and animal resources are being destroyed because of these Chinese, it was good that bitcoin is no longer influenced by china

[error08]

China is a strict country, even the government block social media, google, youtube and many things including cryptocurrencies.
They don't want to adopt a technology which come from abroad, they want to invent and create their own technology in their way.
Actually, it's better if China ban cryptocurrency for good, so people will not fall to every negative news from china

[CryptoBry]

China is thinking that if they will go into the world of cryptocurrency then it must issued and backed by the state and not by outside forces it can not control fully. This has been he very reason why China banned Bitcoin and the whole of cryptocurrency last year including ICOs and now they are slowly cracking on Bitcoin mining. They always want to have full control not less and even more. And the reason why the government is not in a hurry to issue its own cryptocurrency is because it is now learning that the probability of it not being successful is 90%. I advise the government to just call their cryptocurrency as just digital currency or digitized fiat money whichever they prefer. Cryptocurrency can mean many things that no government can ever do about. In my belief, a government crypto is a false crypto and no sugar coating can ever cover that lie.

[Gotottack]

While it does not recognize bitcoin as a payment tool, China recognizes that digital currency is inevitable and is in no hurry to regulate cryptocurrencies, according to Zhou Xiaochuan, governor of the country’s central bank, the People’s Bank of China (PBoC).

The central bank official gave his views on digital currency during a press conference at the National People’s Congress 2018, according to 8btc, a Chinese industry news site.

He said regulations will depend on regional trials and new technology.

The central bank is researching digital currency, he said. Issuing digital currency does not depend on a technology application, he said, but on the ability to reduce the costs and improve the convenience of retail payments. The bank will also consider privacy and security in its actions concerning cryptocurrency.

Digital Currency Is Inevitable

Zhou acknowledged that digital currency is inevitable, and is likely to eventually replace paper money and coins. He said it is important to be wary of the financial system’s and investor influence on digital currency.

Virtual currency is not integrated with existing financial products or the spirit that finance serves China’s economy, Zhou said. Hence, he cautions against the government rushing into digital currency.

Zhou stressed the importance of preventing the introduction of speculative products, pointing to bitcoin’s wild expansion. The expansion of a bitcoin like cryptocurrency would have an unexpected impact on monetary policy and financial stability.

The central bank, Zhou said, is moving cautiously with cryptocurrency and is working with the industry on research and development.

The central bank does not recognize bitcoin as a payment tool, and it is carefully watching bitcoin like financial products and strengthening consumer and investor protection and education.

Promising products need to be tested, Zhou said.

Government Crackdown Continues

Regulators in China recently began blocking social media accounts belonging to cryptocurrency exchanges that continue to offer services to customers located on the mainland.

On Tuesday, Beijing-based media outlet Caixin reported that local authorities had forced social messaging platform WeChat to shut down accounts belonging to select cryptocurrency exchanges in a bid to further restrict the ability of mainland residents to trade cryptocurrencies.

China had forced the closure of domestic cryptocurrency exchanges that offered fiat-to-cryptocurrency trading pairs last September, but some investors told Caixin that they were still able to access the offshore platforms. Other traders moved to over-the-counter and peer-to-peer platforms, often using social media to find trading partners and execute transactions.

https://www.ccn.com/china-will-move-slowly-to-regulate-crypto-central-bank-governor-says/

China, being a huge economy, I do not think they will ever allow unregulated cryptos to ruin the fiat they have diligently and tirelessly built on for long years, even decades. They are people who would always protect their own because they want to be sure they get something. That is why they are open to digital currencies provided it will be regulated by their central bank. You know, Chinese merchants want a sort of guarantee that they have something for themselves at the end of each day. Hence, by strong culture, the Chinese government will do whatever it takes to stop anything, Bitcoin included, from interfering with the strong economy they have built on.

[iram1011]

Nowhere in the article, it is stated that China is going to regulate the decentralized cryptocurrencies like Bitcoin, Eth etc. They are in the process of developing their own government backed cryptocurrency and they have been working over it since October mid and it was confirmed by the Chinese Central bank. By inevitability of cryptocurrencies, they meant that fiat will be replaced by virtual currencies which will be again government backed. If we talk about the decentralized currencies, Chinese government is trying hard to curb the exchanges or over the counter trades along with banning social media cryptocurrency accounts. Chinese government isn't at all favorable to cryptocurrencies.

[Jhiesha]

I think right now its happenning already, Chinese is slowly moving to find ways to regulate cryptocurrency in their country, China. To them,   their government should gain control of cryptocurrency, for them to have the firsthand and government benefitted on it.

[orions.belt19]

Your title is a bit misleading,OP.China will not regulate cryptocurrencies.The PBOC wants to create a state-backed crypto,while they continue to ban crypto traders,exchange platforms and miners.
Their plan is totally stupid and pointless.It would be cheaper for the chinese communist government  to adopt bitcoin or some altcoin ,build a big government owned cryptocurrency marketplace and invest in mining hardware.Building a blockchain from scratch and inventing a brand new cryptocurrency will be a failure ,in terms or costs and security.

I similarly had the same initial thought and first had the impression that China was making major developments for crypto. It's no surprise that they are now on the move to have their own regulated cryptocurrencies. Nothing will ever get in the way of China which is not under their control. Not even google has made it's way. China has their own google called "Baidu" because google is out of their control. Baidu basically has almost the same function and interface, so they must be doing the same for cryptocurrencies. It may be a lot more efficient to just allow the use of Bitcoin and altcoins but the Chinese government prefer to have regulation.