Central Bank of China working on crypto

The Chinese central bank, The Peoples Bank of China (PBoC) held its 2018 National Currency, Gold, and Silver Conference on March 28.

Among the topics discussed was cryptocurrency regulations.

Fan Yifei, the Deputy Governor of the PBoC, delivered a speech declaring to protect the value of the Chinese Yuan.

Many of his plans to protect the national currency involved controlling “unofficial” currencies.

Although, he also revealed that the PBoC is developing its own digital currency.

Speaking of the government-developed cryptocurrency, Fan said:

“Efforts were made (by the PBoC to strengthen the management … steadily promoted the development of the central bank’s digital currency.”

Later in his speech, when naming the coming year’s objectives, he called on the bank to “solidly promote the R&D of the central bank’s digital currency.”

When discussing measure to protect the Yuan, he said the government must “carry out rectification of various types of virtual currencies.”

Throughout his speech, Fan avoided speaking outright of China’s regulatory stance on cryptocurrency.

Crackdown in China

China was once a dominant market for Bitcoin, but the nation has recently cracked down on both foreign and domestic cryptocurrencies.

Shutting down cryptocurrency exchanges, banning ICOs and freezing trader’s accounts have all become a familiar practice.

Zhou Xiaochuan, the Chinese central bank’s governor, has been adamant that the government does not recognize digital currencies as being equal to fiat, saying:

“The banking system does not accept it.”

Despite these views, the PBoC is developing its own “official” cryptocurrency called Digital Currency for Electronic Payment (DCEP).

The new digital currency will be in development until its launch in 2019.

According to Xiaochuan, the virtual currency will strictly suit the needs of the country.

He said the focus for the DCEP would be on “convenience, rapidity, and low cost in a retail payment system.”

It will also “take into account security and protection of privacy,” he added.