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An overview at China Government’s regulated cryptocurrency project

Apr 02, 2018 Posted /  939 Views

An overview at China Government’s regulated cryptocurrency project

China would reportedly block anyone in the country from accessing websites that offer cryptocurrency trading services or initial coin offerings (ICOs). Advertisements relating to Bitcoin and other virtual currencies have also been taken down from search engines and social media in the country. The authorities in China have already banned ICOs and shut down domestic exchanges, but that didn’t hindered people accessing foreign services within the country. The central bank reportedly said it would “tighten regulations” on Chinese people’s participation in overseas cryptocurrency transactions and ICOs.

In a strategy to protect the value its own currency against cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH) and Ripple (XRP), the Chinese Central bank has indicated plans of developing its own government regulated digital currency. The announcement was made on the website belonging to the Central bank of the People’s Republic of China.

In the 2018 National Currency Gold and Silver Work Video and Telephone Conference, Deputy Governor of the Chinese Central Bank, Fan Yifei, said that the People’s Bank Party Committee and the People’s Bank monetary gold and silver department was geared towards problem-oriented, market-oriented and livelihood-oriented practices and has continually changed its working philosophy, style and methods, to continue to promote and reform key areas of the country’s currency and reserves.

The coins issued by ICO are even more ridiculous, Yifeng said. In addition, he asked, how can a sovereign credit currency act as a liquidity instrument and payment instrument? There is no clear timetable for the launch of the legal digital currency, he said.

Also, according to local media, China will block access to domestic and foreign services “to prevent financial risk.” China has a long tradition of blocking unwanted foreign websites using the so-called Great Firewall of China. According to SCMP, cryptocurrency ads have also now vanished from the Baidu search engine and the social media platform Weibo, much as recently happened with Facebook.

The Blockchain Technology Research Institute will establish collaborative relationships with a number of universities and research institutes to promote research in areas such as cryptography algorithms, zero-knowledge proofs, and distributed technologies. At the same time, it will apply for more financial technology patents.

While some countries like Australia are seeking public input on cryptocurrency tax guidelines inorder to regulate them and some other countries like South Korea likely to legalize back crypto, China has always been one of the odd one out which completely has barred foreign crypto and has taken an step to initiate its own cryptocurrency similar to Venezuela's cryptocurrency, Petro.

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Tags: cryptocurrency trading services coins issued by ICO

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