The director-general of the PBoC asked the chinese central bank, the adoption of a crypto-currency managed by the State

The director of the institute for research on digital currencies to the people’s Bank of China has asked the chinese central bank put in place a crypto-currency to help stabilise the chinese currency. This information was relayed by Yicai. Yao Qian, director of the institute and discussed the potential benefits of a crypto-currency that is managed by the government at a meeting held last week.

He says that in a digital currency backed by the State would provide stability to the common currency. It was noted that the regulation of a crypto-currency supported by the government will allow the central bank to not having to fix the rate of inflation.

Check out below the video of the YouTubers Crypto Mentor99 explaining these facts :

The Chinese position on the Bitcoin

As a report to NCC, China has adopted a firm stance against Bitcoin and other crypto-currencies. The chinese government has claimed that these digital currencies have no intrinsic value and are used by criminals to launder money and commit fraud.

Pixabay

In this perspective, the PBoC has prohibited the ICO, as well as the exchange of crypto-currencies. In addition, Yao Qian is in favour of the use of technology blockchain. He said that central banks should not be limited to the algorithms of encryption existing, but rather continue to develop their own algorithms to meet the current needs of banks.

It is the opinion of Yao Qian and not the PBoC

The media has pointed out that these comments should not be construed as the official position of the PBoC. Indeed, it is the opinion of the director of the institute. Moreover, it is sure that the people’s bank considers the digital currency as an effective means to implement capital controls.

Shortly after the ban of the crypto-currency last month, Huang Zhen, a researcher affiliated with the PBoC, said he expects the bank to issue a virtual currency managed by the State.

Source : CryptoCoinsNews