PBoC Governor Blasts Bitcoin to Press, But Can Do No More Harm

Fri, 03/09/2018 - 15:24
David Dinkins
Though the governor of the People’s Bank of China rails against cryptocurrency, there’s little more he can do because of the thoroughness of China’s ban
PBoC Governor Blasts Bitcoin to Press, But Can Do No More Harm
Cover image via U.Today

People’s Bank of China (PBoC) governor Zhou Xiaochuan made remarks harshly criticizing cryptocurrency at a press conference today. Zhou said:

"Lots of cryptocurrencies have seen explosive growth which can bring significant negative impact on consumers and retail investors. We don't like (cryptocurrency) products that make huge opportunity for speculation that gives people the illusion of getting rich overnight."

However, the PBoC governor tried to strike an optimistic, though cautious, tone about the potential of Blockchain, saying:

"For Blockchain projects with technological potentials, they should conduct thorough testing before rolling out services. Otherwise, a reckless expansion may incur serious security and financial stability issues.”

China woes

It’s unclear how much more Zhou can do to restrict cryptocurrency in his country. The entire nation of China is already under an ICO ban and a crypto exchange ban. When Chinese users began circumventing the exchange ban by simply logging onto foreign exchanges, China’s government deployed its infamous “Great Firewall” to forbid access to international markets.

Reports have recently begun to circulate that cryptocurrency exchanges were having their social media accounts blocked by the government. As an example, all messages formerly posted by the OKEx exchange have been replaced with the following note:

"The platform may have violated relevant laws and regulations after being reviewed per users' complaints. The account is currently blocked and content is not available."

Given the thoroughness of China’s anti-cryptocurrency measures to date, Zhou’s comments come across as an old man yelling at the clouds.

About the author

David Dinkins is a freelance writer who holds a Master of Arts in history from Louisiana Tech University and has extensive teaching experience both at LSU – Shreveport and University of Phoenix. He got involved with cryptocurrency in early 2014 working as part of the Dash Core Team and have served in the role of writer/editor (mostly editor) during that time. He has edited a huge number of documents for the Core Team, including the Evolution whitepaper, the PrivateSend whitepaper, and many of Evan Duffield’s communications with the Dash Community.