Zhou Xiaochuan, Governor of the People's Bank of China rushing to issue a national digital currency and still does not recognize Bitcoin as a legitimate payment method, reports China Daily on March 9.

Zhou frankly expressed the position of the PBoC:

"We currently do not recognize Bitcoin and other digital currencies as a tool like paper money, coins and credit cards for retail payments.The banking system does not accept it. "

As part of a press conference at the annual National People's Congress, Zhou has declared that the PBoC " must prevent substantial and irreparable damage " the domestic economy. At the same time, Zhou proposed that digital currency will eventually reduce the circulation of cash. According to the China Daily, the development of digital currency is " technologically unavoidable ."

While the PBoC has been active in monitoring the development of Blockchain and Distributed Registries technology, Zhou let us add that some applications of the technology must be controlled in order to ensure that they do not propagate too fast:

"If they propagate too quickly, it can have a big negative impact on the consumers." It could also have unpredictable effects on the stability Financial and the Transmission of Monetary Policy. "

In February 2018, the state-owned Bank of China filed a patent for a solution to scale the Blockchain system .

Beijing continues to take a firm stance on decentralized cryptocourses such as Bitcoin, with a ban on Initial Coin Offeringings (ICO) since September 2017 and continued crackdowns on the last few vestiges of private commerce. Last month, China added offshore cryptocurrency swaps and ICO websites to its "Great Firewall".

While the legal landscape surrounding Chinese cryptocurrencies was unpredictable, companies continue to oppose the status quo. Cointelegraph reported on March 7th.