China's Position on Crypto Likely to Harden Under New PBOC Governor

China’s cryptocurrency markets have witnessed a number of significant events in recent weeks, including affirmation from the People Bank of China (PBOC)’s new governor, which will likely intensify the country’s crackdown on cryptocurrency.

Also Read: Chinese Merchants in Moscow Convert Most of Their Cash to Crypto

New PBOC Governor Reaffirms Stern Position Regarding Cryptocurrencies

Whilst attending a forum on monetary policy at Asia Annual Conference 2018’s Boao Forum, China’s recently appointed central bank governor, Yi Gang, indicated that the PBOC’s stance regarding virtual currencies will not soften under his leadership.

Yi Gang described cryptocurrencies as offering little to contribute to China’s economy at large, defending the government’s cautious stance with regards to virtual currencies. “In general, PBOC is maintaining tight supervision among virtual currency, in the meantime, the central bank is also exploring a better way for digital currency to play a more active role in service to the real economy,” Yi Gang said.

Yi Gang also again reaffirmed the Chinese state’s design to be globally competitive as a leader in blockchain innovation and adoption.

Blockchain Conference Shut Down by Police Due to Presence of ICO Organizer

The Global Fintech & Blockchain China Summit 2018 was suddenly shut down by local authorities last week, with police citing “security risks” as the basis for their actions. Reports have alleged that police were tipped off by conference participants that an unnamed individual behind an initial coin offering (ICO) that had yielded losses for investors was present at the conference.

PTP International, the company responsible for organizing the event, expressed incredulity and denied any wrongdoing in response to the police’s actions. “We are still investigating the reasons for the suspension, and so far the explanation offered by the police is that it is due to a security risk. We are working on a solution regarding how to make it up to the event attendees. The conference is in compliance with the regulations in China and does not feature any ICO roadshow,” the company stated.

Alibaba Music Group Co-Founder Defends Bitcoin

Gao Xiaosong, songwriter, and chairman of Alibaba Entertainment Strategic Committee, recently endorsed bitcoin and cryptocurrency on his online talk show – which receives an accredited viewership of more than 850 million worldwide.

Gao Xiaosong stated that “The essence of currency is not gold or silver, but lies in social consensus. It is exactly currency if it has exchange value. In this sense, I cannot get clear why so many people criticize virtual currency, (after all) currencies at the very beginning are virtual.”

The Alibaba representative described all monetary forms as being “featured by scarcity and community consensus,” arguing that “This is the same case with bitcoin.”

Do you think that China’s regulatory position is likely to soften, or intensify in coming years? Share your thoughts in the comments section below!

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