Governor of the People’s Bank of China (PBoC), Zhou Xiaochuan, said in a press conference that authorities are not rushing to issue a national digital currency and still do not recognize Bitcoin as a legitimate payment method, reports China Daily on March 9.
Zhou expressed the PBoC’s position frankly:
“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.”
As part of a press conference at the annual National People’s Congress, Zhou said the PBoC “must prevent substantial and irreparable damages” to the domestic economy. At the same time, Zhou offered that digital currency will ultimately diminish cash circulation. Local news media outlet China Daily quoted him saying the development of digital currency is “technologically inevitable.”
While the PBoC has been active in monitoring the development of Blockchain and distributed ledger technology, Zhou added that certain applications of the technology should be controlled to ensure they do not propagate too fast: […]