While speaking at Caixin Hengqin Forum in Zhuhai, the former boss of the People’s Bank of China (PBoC) Xiaochuan Zhou, said that there are two goals for international digital currencies. The first is to develop digital payment and its use for digital payment and its use for the retail system in the country, and second is to use it for cross-border payment for international financial institutions.
“Currency is a symbol of national sovereignty.”
The former head also mentioned that a currency is a symbol of national sovereignty. He also warned that central banks of developed countries are very cautious in choosing the direction of technology if they go in the wrong direction, the losses are very large, and there might even be a crisis of trust, he added.
Zhou also mentioned that China is a challenging environment to test out the new digital currency, and a country with a smaller population could be a better option as the cycle for currency circulation would be shorter.
China continues to crack down on crypto businesses.
As reported earlier, the PBoC announced a crackdown on crypto-related businesses in the country. The crackdown on crypto exchanges also coincided with the drop in the price of the leading cryptocurrency. Cnledger reported that 173 Chinese virtual-currency trading and token issuing platforms have all exited without work after the central bank announced to take strict measures against all crypto businesses.
Just in: "The 173 Chinese virtual-currency trading and token issuing platforms have all exited without risk", from PBoC's newly released China Financial Stability Report (2019).
— cnLedger (@cnLedger) November 25, 2019