China is open to idea of a digital currency, as long as it’s ‘efficient and safe’
Central bank governor Zhou says financial system must not be disrupted
After it banned cryptocurrency exchanges and declared all initial coin offerings illegal, China is still open to the idea of a digital currency if it doesn’t disrupt the financial system, central bank governor Zhou Xiaochuan said on Friday.
The government will be happy to accept those that “bring efficiency, low cost and safety” to consumers as long as they “don’t directly conflict with the current financial stability and financial order”, Zhou told reporters on the sidelines of the National People’s Congress in Beijing.
“We don’t want to create products for speculation ... the illusion of getting rich overnight is not a good thing,” the outgoing People’s Bank of China chief said.
“Bitcoin and other similar products have been launched too quickly but not cautiously ... their rapid proliferation may have a big negative impact on consumers,” Zhou said. “These products have an unpredictable effect on ... monetary policy.”
