In 2017, Chinese Government put hard steps on Cryptocurrency transactions and banned their official currency ‘Renminbi’ in exchanges for the cryptocurrency. But now the good news comes, People’s Bank of China (PBOC) is now planning on rectifying all virtual currency operations by introducing new “Reforms and Supervisions”.
The People’s Bank of China is thinking to improve their mistake what they have done last year. And due to this news, the Bitcoin, Ethereum, and some other popular cryptocurrencies are strengthening their price. Earlier in this month of April, the price of some major cryptocurrencies including Bitcoin dip by 25% or more due to some major announcements by Indian Government. But now it is coming back to their road.
What PBOC did in 2017?
The People’s Bank of China (PBOC) first cracked down on ICO projects by making them illegal, and then the bank made domestic cryptocurrency exchanges close down their operations. But it has been one year since this announcement. Now people are eagerly waiting when PBOC will reopen the digital currency transaction.
What is the Latest News by PBOC?
People’s Bank of China (PBOC) is thinking to strengthen virtual currency supervision. They are thinking to reopen the Virtual currency transaction with their official currency. Also, they are thinking of making ICOs legal as well. Moreover, there is some news from the sources that they are planning to create their own central bank digital token.
PBOC also revealed that they will take further action against cryptocurrency operations including multi-level-marketing schemes. Also, the Vice Governor pointed towards digital renminbi (renminbi is the official currency of the People’s Republic of China).
Digital Renminbi: Good or Bad?
As said earlier, PBOC is planning to make their own digital asset, own digital cryptocurrency as their country’s official digital currency. It is hard to say that how long people have to wait for it. But as far as the technology is concerned it is a must thing. It is believed that by the mid 21st century the hard money will vanish by itself and only digital currency will left. So, it is a nice step by China in order to their official currency Renminbi in digital as well.
Certainly, China will use Blockchain Technology in order to execute the successful execution of Digital Renminbi. Guofeng believes a PBOC digital currency could help negative interest rate methods, and so the central bank’s R&D efforts should be sped up.
What Are Experts Saying?
Actually, according to experts, China is making cryptocurrency legal (via People’s Bank of China) so that they could launch their own cryptocurrency. The Chinese government still doesn’t look at cryptocurrencies favorably but has allowed the idea of blockchain concepts to flourish their Digital Renminbi. This is another way of their government to increase control on their people.