Chinese Government Says Forex Reforms Will Deal With Cryptocurrencies

The Chinese Government has said that its treatment of cryptocurrencies such as Bitcoin (BTC) may change again as it looks to reform its Forex markets.


Trent Partridge #globalcoin #facebook #crypto currency https://t.co/J4dY2QMvzP — Libra Coin News – Trent Partridge (@LibraCoinNews) December 24, 2019

On December 24, it has been reported by Reuters that a new research initiative will accompany the expansion of Beijing’s blockchain cross-border financing pilot platform.

However, the platform, which launched in March this year, is currently running as a pilot scheme in 19 provinces.

Lu Lei, the Deputy Head of the State Administration of Foreign Exchange, said:

“We will gradually expand the scope of the pilot and the application scenarios of blockchain technology in cross-border financing and macro prudential management.”

Lu added:

“At the same time, (the government) will push forward a prospective study on foreign exchange reforms to deal with cryptocurrency and explore the construction of the foreign exchange regulation and technology system under the new situation.”

It has been analyzed that the comments are conspicuous, coming as China prepares to launch its central bank digital currency, which the central bank stressed will not have the characteristics of Bitcoin.

Similarly, Mu Changchun, the Deputy Director of the People’s Bank of China (PBoC), commented:

“The currency is not for speculation. It is different to bitcoin or stable tokens, which can be used for speculation or require the support of a basket of currencies.”

Thus, in the meantime, authorities remain committed to the propagation and expansion of use cases, among the most recent of which is using the technology for bond issuance.

Source: uk.reuters.com | cointelegraph.com

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