Categories: News

Head of People’s Bank of China Talks Blockchain and Digital Currencies

Several central banks have shown interest in launching their own digital currencies and People’s Bank of China (PBoC) is at the forefront of this movement. The PBoC recently held a meeting that examined the benefits and challenges of applying blockchains and distributed ledger technology to improve China’s monetary and social systems.

Zhou Xiaochuan, head of the PBoC, was recently interviewed by Caixin Weekly, and his comments shed some light on why the PBoC is so interested in various digital currency technologies.

According to the transcript provided by Caixin Online, Xiaochuan views digital currencies as a necessity in an increasingly tech-oriented society.

“With the rapid development of the Internet and the significant changes in the global payment systems, it is necessary to establish the issuance and circulation system of digital currency, which will help build the financial infrastructure and improve the quality and efficiency of the economy.”

However, the governor believes that government-issued digital currencies will be different from the current breed of cryptocurrencies such as Bitcoin. Xiaochuan believes that central banks should remain in control of the issuance of state-backed cryptos. He also mentioned that these new digital currencies should have various mechanisms implemented that will prevent money laundering and terrorist financing, “The issuance, circulation and transaction of digital currency will follow the same management principles of traditional currency.” said Xiaochuan.

Related Post

While the PBoC’s meeting on blockchain technology – which was held on the 20th of January – concluded that distributed ledger-based systems can improve China’s financial infrastructure, Xiaochuan said that blockchains may not be up to the task, at least in their current form:

“But so far block chains have consumed too many resources, including both computation and storage resources, and cannot handle the current transaction volume. We need to wait and see whether this problem can be solved in the future.”

 

Image credit: 1

If you liked this article follow us on twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin and altcoin price analysis and the latest cryptocurrency news.

Traderman

Avid blogger, entrepreneur, and cryptocurrency enthusiast. I love writing about cryptocurrency, NFTs, price analysis, and much more!

Share
Published by
Traderman

Recent Posts

Aptos (APT) and Tron (TRX) Prices Slide, As Volume Soars For Rollblock Suggesting Parabolic Rally

As Aptos and Tron prices take a recent downturn, the spotlight shifts to Rollblock, whose…

6 hours ago

Altcoins to Watch in November: Binance Coin (BNB), Rollblock (RBLK), and Neiro (NEIRO)

As the crypto markets roll into their most bullish time of year, we present three…

6 hours ago

Analysts Forecast $1 for Cardano and Lunex Network As Dogwifhat Plunges To Former Lows

As the crypto market prepares for a major rally, experts believe that two top altcoins,…

6 hours ago

Retail Traders Panic Sell During ‘Fake Dip’; Whales Hold Tight to SOL, DTX, and SHIB for a Millionaire-Maker Bull Run

Solana (SOL): A Strong Ecosystem Despite Volatility Solana (SOL) has been all over the place…

7 hours ago

Llama 3.2 Predicts Price For Dogecoin: $2 Peak By 2025 And $5 Rally For DTX Exchange This Winter

Cryptocurrency trends are keen on the forecast that was recently released by Llama 3.2 model…

8 hours ago

Crypto Whale Sparks 8x Surge In $OPK Price with Massive Buy-in

A mysterious crypto whale, who previously invested 9,600 SOL into tokens $Pnut and $FRED, has…

9 hours ago