China to Launch New Assault on Cryptos, Keep Exploring Own Digital Currency

China to Launch New Assault on Cryptos, Keep Exploring Own Digital Currency

Liao Shumin

Date: Fri, 03/30/2018 - 14:19 / source:Yicai
China to Launch New Assault on Cryptos, Keep Exploring Own Digital Currency
China to Launch New Assault on Cryptos, Keep Exploring Own Digital Currency

(Yicai Global) March 30 -- China’s central bank will unleash a new clampdown on virtual currencies and push ahead with research and development of a national digital currency, according to the deputy governor of the People’s Bank of China.

The latest campaign is aimed at regulating disorderly cash exchanges and maintaining order in yuan circulation, Fan Yifei said in a teleconference on currency and bullion two days ago.

Authorities in China, once a world center of trading in Bitcoin and other virtual currencies, launched their first salvo against cryptocurrencies last year. They have banned exchanges and initial coin offerings and blocked access to offshore trading platforms among other measures.

The event summarized achievements in the currency and bullion fields in recent years, analyzed the current situation and challenges, and arranged top priorities for this year, PBOC’s website reported.

Currency and precious metals work faces new challenges as traditional business has undergone major changes with the development of the digital economy. Diversified payment methods and the declining use of cash have had an extensive impact on yuan issuance and circulation, and the public has imposed higher demands for cash services, Fan noted.

He called on the central bank to intensify reform and innovation, improve cash services and related infrastructure, prioritize and tighten control over yuan quality, and administer large cash sums, while instituting a clampdown on various virtual currencies.

PBOC will improve its investigative and analytical views, pinpoint changes in cash demand and technological applications, and communicate and cooperate more with other agencies to suppress chaotic cash circulation, he added.

 

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Keywords: pboc, cash management, Virtual Currency