Digital currency can replace cash in China, according to the governor of the People’s Bank of China, Zhou Xiaochuan. The governor of PBoC has highlighted that the central bank is now considering the digital currency as an option to cut the costs and find more convenient methods of payment.
12 March, AtoZForex – The governor of the People’s Bank of China, Zhou Xiaochuan, has stated that the digital currency might replace physical in the country. The PBoC is presently working on the development of the digital currency. The initiative is called the Digital Currency (for) Electronic Payment, or DCEP.
Bank of China Governor Says Digital Currency Can Replace Cash
Earlier this January, the Central bank of China’s vice governor has suggested a concept of a centralized digital currency. The virtual currency would be carrying the properties that enable the PBoC to verify transaction data.
Mr. Zhou has made remarks during the press conference on the 9th of March. Some days before the conference, another speaker at the Two Sessions has spoken about the Blockchain technology.
The governor of PBoC has highlighted that the central bank is now considering the digital currency as an option to cut the costs and find more convenient methods of payment. Reportedly, Mr. Zhou has backed his stance in regards to the digital currency by warning parties that work on the development of Blockchain solutions that they should test their products very thoroughly. The same applies to all the platforms and services related to the Blockchain technology. He has been quoted as saying:
"We don't like creating products for speculation and making people have the illusion that they can get rich overnight.”
China Cryptocurrency Stance
Back in 2017, the Chinese officials have ordered the shutdown of digital currency exchanges by October 31 of the last year. Some of the platforms, nevertheless, have continued to offer their services from abroad. Earlier this month, the local media reports have stated that Chinese authorities have been blocking some of those entities.
The Chinese government has been clamping down on cryptocurrency market players that are fraudulent in the first quarter of the current year. At the beginning of February, the central bank-related publication has stated that the country would utilize its "great firewall" in a bid to prevent users from accessing offshore cryptocurrency exchanges.
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