In recent reports, Zhou Xiaochuan the president of People’s Bank of China(PBOC) has stipulated that the use of cash or physical money might end in future but in the foresight of this statement should not lead to the creation of a cryptocurrency of their own.
In an annual press conference, Xiaochuan told that Chinese government will not rush into the creation of the digital currency but with a warning that cryptocurrency is used more often for speculation than payments which don’t serve the economy. Hence a currency with reformed financial regulations is necessary and the same is in process of development.
Statement from the press conference,
“We must avoid big mistakes that could lead to irreparable losses, so we are cautious. We do not like to create products for speculation and make people have the illusion that they can get rich overnight. “
Firm steps against decentralized cryptocurrencies
Zhou Xiaochuan and the entity that presides (until this year), is one of the officials who, together with the People’s Bank of China and other regulators of that country have put all their effort to stop the growth of the digital currency market. They have eliminated many exchange houses and banned the ICO, even those that are developed outside of China, but that its inhabitants can access them.
The truth is that, after the creation in 2017 of the Digital Institute of Currency Research, the Central Bank of China is in the design of its own currency. What many might interpret as a radical currency exchange in that country. In fact, a chain of blocks has already been tested, where several private banks participated.