Very few positive stories come out of China with cryptocurrency in the headlines. This one is no different as the central bank has continued with its rhetoric over the risks of dealing with digital currencies.
Same Old Story; Crypto Bad, Blockchain Good
The People’s Bank of China has issued another warning over its perceived bubble effect associated with cryptocurrency investing. Director of the research bureau of China’s central bank, Xu Zhong, penned the paper along with Zuo Chuanwei, a PBoC analyst, according to reports.
The notion that digital currencies have no intrinsic value was once again used to state that they could never be seen as a replacement for fiat currencies. The paper went on to say that digital currencies are extremely vague in nature making it difficult for authorities to track transactions or implement money laundering policies. This appears to be the crux of the issue for central banks; they want full control over flow of finances.