China Will Move Slowly to Regulate Cryptocurrency: Central Bank Governor

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…

Read Full: China Will Move Slowly to Regulate Cryptocurrency: Central Bank Governor