The People's Bank of China (PBoC) has issued a new warning alleging that cryptocurrency projects are misusing its name in an effort to defraud investors.
Issued on 15th June, the announcement sought to make public the issue, while clarifying that the central bank has not issued any digital currency or authorized any institution to do so. Adding to that, it reiterated that there is no digital currency marketing team at the PBoC, nor does the institution consider applications of the technology legal tender.
The PBoC went so far as to warn Chinese consumers that so-called "digital currencies issued by PBoC" could be a part of a pyramid scheme.
The PBoC concluded that:
In broader context, the comments are the latest that find China's central bank stepping up its regulation of the cryptocurrency sector. (Earlier this year, it sought to aggressively police domestic exchanges amid a surge in the bitcoin price.)
Lending plausibility to the scams, they also come at a time when the PBoC is actively increasing its blockchain research and development, and former representatives of the institution have begun to up about the technology and its potential impact.
RMB image via Shutterstock
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.