On Friday 9th March 2018, Governor of the People’s Bank of China, Zhou Xiaochuan attended a news conference on the sidelines of China’s National People’s Congress (NPC) in Beijing, where he spoke on the topic of cryptocurrencies, he expressed his opinions by saying
“Several cryptocurrencies have experienced massive growth this can bring significant negative impact on consumers and retail investors”, Also while relating to the matter and speaking on behalf of The People’s Bank of China he added “We don’t like creating products for speculation and creating an illusion where people can think it is possible to get rich overnight”
The most populated country in the world which was also once a base for the world’s largest crypto exchanges, just a year ago imposed a ban on initial coin offerings (ICO) and cryptocurrency trading platform due to growing concerns regarding the increasing thefts and frauds incurred which results in millions stolen online.
Following an announcement which revealed the country’s plans to make amends for further accelerating their market access. The governor of the People’s Bank of China (PBC), Zhou Xiaochuan claimed on Friday that China could be more adventurous in opening up their financial sector
Zhou also gave a brief statement when quizzed about the drop occurred in China’s forex reserves in the previous month following 12 months of constant development. He concluded that this decline was due to the global market’s falling bond price index and the rise of the USA dollar index. While also stating that By doing so it’s attempting to restrict the speculative market which has helped to fuel prices. He was also quick to claim that this situation wouldn’t have any effect on the position of the central or commercial banks.
As per stated by Zhou “For us, the direction of virtual assets requires caution .. from China’s perspective, virtual asset transactions are not in line with our idea that finance must serve real economic growth”.
Zhou also revealed PBS’s standpoint on the digital currency world for the reporters present on the sidelines of the annual parliament session by saying “We do not now recognize Bitcoin and other digital currencies as an asset like paper money, coins and credit cards for retail payments”.