An official of the Central bank of China says He doesn’t recognize that Bitcoin and other digital assets in the crypto space have any actual value despite the increase in the popularity of the digital assets.
According to a news outlet in China, People’s Daily Online, the deputy director of the FCRPB (Financial Consumer Rights Protection Bureau) of the Chinese Central Bank, Yin Youping, said in a media briefing that all cryptocurrencies are just some sort of speculative assets.
Advice for the Public: Stay Away from the Crypto Markets
The bank official in the briefing advised the general public to avoid the crypto markets by all means to avoid financial losses. He said, “The citizens are reminded that the digital assets are no legal tender in the country, and they do no hold any actual value.”
Yin Youping said to address the citizens’ anticipations for the return of crypto trading operations in the country as it was revealed that the central bank and other related agencies would monitor the exchanges in the country, including the overseas exchanges and the retail traders.
In the report, it was also revealed that the institution is working collaboratively with the concerned departments in the Chin Banking and Insurance Regulatory Commission.
The official revealed that there are also plans to block crypto exchanges, applications, and other channels amid the resolute stand of the People’s Bank of China in bringing down the use of blockchain and cryptocurrencies.
The Chinese Crackdown on the Crypto Space
This year holds the record of various crackdown occasions in the crypto market spurring from China. These issues are centered around assets mining and trading.
The fundamental concern with this asset class is its potential to be an easy channel for money laundering amid other illicit acts and also the climatic concerns involved with its mining due to the energy demands from the mining farms.
Last month, the People’s Bank of China further reiterated its stance on the crypto space, saying the bank will continue to put pressure on the ecosystem through heavy regulations.
The Launch of China’s CBDC
Though the country is not a fan of digital assets, there are plans on the ground to release its digital currency issued by the PBoC. Recent data recorded during the digital currency trials revealed that there are about 20 million people in the country that have the Digital Yuan wallet, and this population has made about 70 million transactions equaling $5.3 billion in worth.