After banning the exchange of cryptocurrencies and declaring all initial money offerings illegal, China is still open to the idea of a digital currency, if it does not disturb the financial system.
The opening, according to SCMP , was made by the governor of the central bank Zhou Xiaochuan, on 9 March. The government will be happy to accept those that can "bring efficiency, low cost and safety" to consumers as long as they "are not directly in conflict with the current financial stability and financial order. We do not want to create products for speculation (...) the illusion of getting rich overnight is not a good thing, "Zhou said on the sidelines of the Beijing People's National Congress.
"Bitcoins and other similar products have been launched too quickly without caution (...) their rapid proliferation can have a major negative impact on consumers (...) These products have an unpredictable effect on monetary policy," Zhou said. Fearing uncontrollable financial risks, Beijing used the iron glove to separate the digital currency from the conventional banking system and blocked the trade in bitcoins and other cryptocurrencies.
After he ordered the closure of all cryptocurrency bursaries and made illegal all initial offers of coins in September 2017, Beijing said, in February 2018, that it would block all Chinese websites related to the trade in cryptocurrencies and purchases of coins .
The words of Zhou suggest a strong concern about the speculative risks linked to cryptocurrencies and the possibility of further stringent regulation in the future.
The Chinese Central Bank is developing a digital currency for electronic payment, based on existing notes and coins, without changing its position and that of commercial banks in the financial system.
The main objective of such a digital currency supported by the government is to provide an alternative to cash, ensuring the smooth functioning of monetary and financial stability policies and, at the same time, protecting consumers.
The governor of the central bank, who was personally involved in the sovereign project of the Chinese digital currency, also said that Beijing wants digital money to be used only for payments and not a "virtual asset" for investment.