China Continues Crackdown on Digital Currencies While Developing Its Own Cryptocurrency

March 30, 2018 10:29 pm Published by
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The People’s Bank of China (PBoC) released a list of its chief priorities for the upcoming year which included cryptocurrencies as the country seeks to assert control over digital currency exchanges while also developing its own cryptocurrency, according to CCN.com.

The PBoC released a statement on March 28 which said it would “carry out the rectification of various types of virtual currencies” during a wider attempt to enforce regulatory policies that began last year that restrict cryptocurrency trading inside the Asian country. 

The focus for the upcoming year will include a “crackdown on all types of virtual currencies,” but the publication didn’t specify what measures the PBoC or other regulatory bodies were considering during the crackdown. 

Fan Yifei, the vice governor of the PBoC, said that the emerging digital currency economy has had a “profound impact on the circulation” of the renminbi, the official currency of the PBoC, and called on the bank to continue researching the creation of a digital currency that could potentially replace physical RMB notes. 

The ongoing emphasis on restrictions comes as part of a wider exercise of control and regulation from the Communist Party of China under President Xi Jinping. 

In 2017, China restricted foreign exchange purchases to RMB 100,000 ($16,000) per bank account, with an annual limit of foreign currency purchases established at $50,000 per person. 

Cryptocurrency trading was booming in China since it was one option for citizens to evade the financial restrictions of the government since the assets do not correspond to specific borders and can be exchanged for numerous fiat currencies on offshore platforms. 

Regulators have been unable to fully exterminate the industry, but the closure of several mainland-based cryptocurrency exchanges in China has led to an intense decline in trading volume over the past six months. 

However, many are optimistic that China will help foster a future for virtual currencies through official projects, especially after the appointment of Yi Gang as PBoC governor since earlier this month he boasted how bitcoin “is a currency that provides freedom to anyone that uses it.” 

WN.com, Maureen Foody



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