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16:45, 09-Mar-2018
Central Bank: China not in hurry to develop digital currency
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China is not in hurry to develop digital currency, and the development should be prudent to avoid excessive speculation, Zhou Xiaochuan, governor of the country's central bank, said on Friday at a press conference on the sidelines of the annual session of the National People's Congress.
“It can be further promoted after the tests fully conducted in local regions are reliable,” said Zhou. The ongoing development of digital currency was launched by the central bank after the approval of the State Council in 2017.
The goal of the development of the digital currency is not to realize the application of a certain technical solution, but in essence to pursue the convenience, rapidity, and low cost of the retail payment system, Zhou emphasized.
He added that the development of the digital currency should focus on serving the real economy and protecting the security and privacy of consumers, and should not clash with the current financial stability and order.
Bitcoin and ICO
The central bank called a halt to fundraising by initial coin offerings (ICO) at the end of last August. The banking system does not accept virtual currency as retails payment tools.
“The launch of bitcoin and some other products are too fast and not prudent enough. If they are rapidly expanded or spread, they may have a negative impact on consumers,” said Zhou.
“They may also have some unpredictable effects on financial stability…and the effectiveness of monetary policy,” he added.
“We don't really like creating a speculative product, by which people have the illusion of overnight wealth. This is not a good thing,” said Zhou.
Bitcoin and ICO
The central bank called a halt to fundraising by initial coin offerings (ICO) at the end of last August. The banking system does not accept virtual currency as retails payment tools.
“The launch of bitcoin and some other products are too fast and not prudent enough. If they are rapidly expanded or spread, they may have a negative impact on consumers,” said Zhou.
“They may also have some unpredictable effects on financial stability…and the effectiveness of monetary policy,” he added.
“We don't really like creating a speculative product, by which people have the illusion of overnight wealth. This is not a good thing,” said Zhou.
