People’s Bank of China: Banning Bitcoin is out of Question

News and Analysis

Despite some fears circulating for a while in the community, the Chinese goverment has no intent of banning bitcoin.

In a recent statement, the governor of the People’s Bank of China Zhou Xiaochuan stated that the central bank did not consider banning digital currencies.

“It is out of the question banning Bitcoin as it is not started by central bank,” Xiaochuan said (according to Coindesk).

Severe restrictions imposed by the Chinese governemnt on financial sector in order to prevent capital outflow from the country are often cited among the main reasons for recent sky-rocketing of bitcoin’s exchange rate.

The government seeks to hinder investments abroad, as they cause capital outflow and consequent slowdown in economy. This narrows the options for the Chinese who still wish to invest, and evidently increases the demand for bitcoin being among the few technologies allowing them to bypass the government restrictions.

The statement somewhat clarified the official stance of digital currencies, which are still beyond regulation in China.

Even though no official policy in regard of bitcoin and other virtual currencies is established as yet, the news caused bitcoin’s exchange rate to go up.

Found a typo? Highlight text and press CTRL+ENTER

Subscribe to our Newsletter


Related posts

Tags: ,