China in No Rush for National Cryptocurrency
At a time when central banks around the world are developing national cryptocurrencies, Zhou Xiachuan, the governor of the People’s Bank of China (PBoC) is taking a softer stance on the issue, stating that Chinese authorities are “not rushing” to issue any such asset in a press conference this Friday. He goes on to reiterate the Chinese position on digital currencies in general, stating quote,
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.”
Zhou’s statements are hardly new, but they do seem to be unusually cautious about the usefulness of a national Chinese cryptocurrency.
Back in January of 2017, the PBoC announced the completion of a trial run transacting digital currencies between banks. At the time, the Chinese seemed to be at the cutting edge of the burgeoning blockchain industry. However, now other countries seem to be taking the lead on national cryptocurrency development. Venezuela has created an oil-backed asset called the Petro while J-coin, E-krona, and Estcoin are under development for Japan, Sweden, and Estonia, respectively. On top of this, the United States Federal Reserve is also said to be exploring the concept of creating its own digital currency according to remarks from William Dudley, president of the New York branch.
Despite the PBoC’s lukewarm progress on developing a national cryptocurrency, the Chinese are still investing heavily in blockchain technology. In February of 2018, The Bank of China filed a patent for a blockchain scaling system. However, the Chinese government continues its hardline regulatory approach to cryptocurrency investing for the public.
Image From Shutterstock