Last autumn, the Chinese government first banned the ICO, and then ordered all cryptocurrency exchanges to stop their work. According to local media reports and plans of the People's Bank of China (PBOC) for 2018, the authorities are going to finish what they started in 2017 by "adjusting" all operations with virtual currencies and implementing new "reforms and monitoring".
Despite the fact that the Chinese government took the last serious actions against the cryptocurrency industry more than six months ago, the community continues to monitor the actions of the NBK in the hope that the financial regulator will allow the exchanges to resume their work. However, while nothing indicates that this may happen, on the contrary – last month, one Chinese politician proposed to create a state cryptocurrency exchange, which indicates the planned monopolization of the industry, rather than the return of free trade. In addition, according to numerous reports, the Central Bank is preparing to issue its own digital token.
At the end of last month, the NBK announced that it plans to continue fighting cryptocurrency operations, including multilevel marketing schemes. According to the Vice-President of the Central Bank, Fan Yifei, the NBK is investigating the issue of issuing its own token – the digital yuan.
"An adjustment will be made for all types of virtual currencies," he said. he. "First of all, we will launch reforms and innovations to promote research and development in the field of production of the Central Bank's own digital currency. Secondly, the Bank should strengthen control and adjust the operation of all types of virtual currencies."
In addition, on 3 April, sun Guofeng, the head of the NBK's financial research, explained that traditional Fiat money had an adverse impact on interest rates in the economy, and the cryptocurrency issued by the NBK would contribute to raising interest rates. Hofen believes that the NBK's digital currency can help to resolve the issue of negative interest rates, and therefore the development and research of the Central Bank should be accelerated.
"In the long run, because of the lower natural interest rate, monetary authorities may incorporate negative interest rate policies into their natural set of measures," sun Guofeng explains. "Due to the fact that the digital currency can solve this problem, the Central Bank should speed up its development."
Despite the fact that in recent months everything showed that China continues to fight the cryptocurrency industry, the authorities understand the potential of blockchain technology. In mid-March, it was reported that the Chinese government was considering the creation of national standards to promote the development of blockchain and distributed Ledger technology (DLT) in the country. In addition, recently it became known that the Chinese petrochemical giant Sinochem Group used blockchain to export goods.
https://news.bitcoin.com/pboc-plans-to-continue-rectifying-cryptocurrency-activity-in-china/
