Bitcoin as Payment Alternative is Still Not Accepted by China

People’s Bank of China governor, Zhou Xiaochuan stated in a press conference that a national digital currency would not be seeing the light of day anytime soon. He then further emphasized that Bitcoin is still now recognized as a legitimate payment alternative by the authorities.

“We(PBoC) do not currently recognize Bitcoin and other digital currencies as a tool like paper money, coins and credit cards for retail payments. The banking system does not accept it.” Zhou explained.

Again, at the annual National People’s Congress, where the press conference took place, Zhou expressed his concerns about the domestic economy, “(PBoC) must prevent substantial and irreparable damages.” But on the Contrary, the governor was also prognostic about digital currencies ultimately overthrowing fiat money. “Technologically inevitable” is the term, the governor quotes to express his opinion about digital currencies.

Besides this, Zhou also talked about his take on blockchains and said that caution should be practiced while handling the technology. He said, “If they [Blockchain technologies] spread too rapidly, it may have a big negative impact on consumers. It could also have some unpredictable effects on financial stability and monetary policy transmission.” The PBoC is actively involved in monitoring the development of blockchains and distributed ledger technology.

This continues the same trend of China’s detrimental attitude towards bitcoins and other altcoins. Recently Beijing put a crackdown on a few remaining foreign crypto exchanges in the country, not to mention the ban they put on Initial Coin Offerings in September last year. Also, offshore cryptocurrency exchanges, as well as ICO websites, are all included in the “Great Firewall” of China.

Decentralized currency is something that China is dead serious about not legalizing in the country. However, many businesses are pushing this obscene conduct of the government and keeping contact with the crypto industry both inland and abroad.

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