BEIJING, 9 Mar — PRIME. The people’s Bank of China (Central Bank) does not recognize the cryptocurrency as means of payment and considers that a too rapid dissemination of such unreliable financial products can result in unpredictable negative consequences on the financial market, said the head of a financial institution Governor Zhou Xiaochuan.
“For example, bitcoin and other digital currency market too quickly, and they are not reliable. Their too rapid expansion could lead to negative impact on consumers. In addition, they can lead to unpredictable consequences on the financial market… From the point of view of the people’s Bank of China, unreliable products should be stopped, and some promising products must go through a thorough check,” — said at a press conference, Zhou Xiaochuan.
He recalled that in August last year, the Central Bank of China has decided to cease operations of ICO and was later banned from direct transactions between the yuan and bitcoin. “Virtual money like bitcoin is not currently recognized by the people’s Bank of China and the banking system as a means of payment, like cash money,” he said.
The head of China’s Central Bank stressed that, despite the fact that new technology is generally a good thing, you should never forget about the safety of financial products and market. “We should not create speculative products to achieve immediate gain. We should always provide consumers with efficient, safe and secure products. We should never go against the financial system and regulations,” said Zhou Xiaochuan.
He added that China still studying new technologies, but believes that the launch of new products should occur only after careful testing and study.
Previously, the Agency Bloomberg with reference to sources reported that China is preparing to prohibit the national investors to trade crypto-currencies on international exchanges. While Chinese regulators plan to study carefully Bank account history and online payment of local companies and individuals suspected of contributing to the cryptocurrency trading on foreign exchanges.
In January, the media reported that Bank of China has instructed the National Association of Internet Finance (NIFA) to request to the authorities of certain regions of the country with a request to adjust the volumes of mining. The Chinese Central Bank explains the limitations of the need to conserve energy.
In September, the government of China, moreover, has prohibited the holding of ICO (IPOs token cryptocurrency), explaining that high financial risk, as well as stopped the activities of a number of cryptocurrency exchanges in the country.