Zhou Xiaochuan, governor of the People’s Bank of China (PBoC), said China is in no hurry in developing its own cryptocurrency.
Speaking at a press conference amid the Two Sessions, China’s annual political event, Xiaochuan said the development of a digital currency should be a prudent progress and excessive speculation must be avoided. He said the government must prevent substantial and irreparable damages, especially when it comes to a large economy.
“We must prevent major mistakes that would lead to irreparable losses, So we are cautious,” Zhou said.
The governor said that they also pay high attention to the application of technologies like blockchain and distributed ledger. He called for blockchain firms to be cautious – and not to grow too fast.
“For blockchain projects with technological potentials, they should conduct thorough testing before rolling out services,” said Xiaochuan. “Otherwise, a reckless expansion may incur serious security and financial stability issues.”
Regarding cryptocurrencies that are currently out in the market such as bitcoin, Xiaochuan struck a critical tone.
“Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors,” he said. “We don’t like (cryptocurrency) products that make huge opportunity for speculation that gives people the illusion of getting rich overnight.”
China, once home to the world’s most largest crypto exchanges, banned cryptocurrency trading and initial coin offerings (ICO) last year amid a broad-ranging clampdown on cryptocurrencies.
Technological development is a “dynamic” process, and the PBoC is closely working with the market participants on regulation policies, said Zhou.
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