Chinese central bank has announced its agenda for the coming year. It continues to target the regulation of cryptocurrencies. Their markets would have to be corrected, according to the letter from Thursday. This disappointed hopes for a course change. These were raked up in the middle of the month with the appointment of the new Central Bank chief Yi Gang in the wake of the personnel carousel in Beijing’s leadership apparatus.
In the East (probably for now) nothing new: On Thursday, People’s Bank of China, the Central Bank of the Middle Kingdom, announced the agenda for the current year 2018 . The agency calls cryptocurrencies in the same breath with dangers to the financial stability of the yuan. So it was necessary to continue to counter their markets with appropriate measures.
“One of our goals continues to be the yuan’s strict quality control […] through corrective action on various cryptocurrencies”,
Central Bank Vice Fan Yifei announces the new, old PBoC direction. While the concrete remains in the dark, but want to continue to consider the innovative possibilities of a centrally-regulated digital currencies, Fan said.
For the time being no change of course
Thus, PBoC disappointed hopes of a speedy change of course. These had become loud in the middle of the month with the appointment of Yi Gang as new central bank boss. After longtime PBoC Governor Zhou Xiaochuan warned against speculation risks in Bitcoin only in March, Yi seemed to be a possible urbane and market liberal glimmer of hope. He was reported to have called Bitcoin “unique” and “inspirational” in recent years. It had already been speculated on a possible abating of the strong Chinese headwind.
In the past year, the government had set a strict course and hard-fought against the domestic crypto markets: Last September, Beijing surprisingly called on crypto exchanges to cease operations. In addition, ICOs were prohibited on Chinese territory.
Last month, Chinese Ministry of Public Security announced that it would extend its monitoring to international crypto exchanges in the future in order to pursue the business of Chinese citizens.
Governments worldwide: crime is the real problem
From an international standpoint, China is one of the first countries crucial to the international financial sector, which views cryptocurrencies as a threat to financial stability. In local latitudes, for example, the European Central Bank ECB insists on its wait-and-see attitude. The tenor from Frankfurt: Crypto currencies are still far from jeopardizing Euro.
As more and more governments and central banks around the world turn their attention to possible control mechanisms , these days a different call from the high government houses resounds. Instead of worrying about financial stability, lawmakers around the world are now increasingly focusing on the criminal use potential of cryptocurrencies.
Currently, the actual market capitalization of all cryptocurrencies is 214 billion Euros. Compared to global financial transactions, however, this still disappears. An actual financial market impairment seems therefore doubtful, at least from the perspective of the numbers.
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