China's Central Bank Eyes Crypto as Possible Yuan Risk

The People's Bank of China says cryptocurrencies will be a top priority for the agency this year, in an effort to protect the national currency.

AccessTimeIconMar 29, 2018 at 12:00 p.m. UTC
Updated Sep 13, 2021 at 7:45 a.m. UTC
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China's central bank has said cryptocurrencies will be one of its top priorities this year, in an effort to protect the national currency.

According to an announcement Thursday, People's Bank of China (PBoC) has outlined its agenda for the coming year during a conference call focused on monetary development.

While Fan Yifei, the vice governor of the PBoC, praised the ongoing progress on central bank digital currency research and development, he highlighted that one of the three priorities for 2018 will be ensuring the integrity of Chinese yuan.

To that effort, Fan said, the agency will reinforce its regulatory measures both internally and with external parties to "rectify different kinds of cryptocurrencies."

While the remarks didn't disclose much about its plans for cryptocurrencies going forward, they come as part of a widened effort taken by the agency in scrutinizing related projects that may undermine financial health in China.

Fan's comments also echo a previous note in early March from the bank's former governor Zhou Xiaochuan, who struck a critical tone towards cryptocurrency speculation and the perceived risks it poses to the country's financial stability.

Additionally, a notice from China's Ministry of Public Security in January in which the agency, which manages the country's police force, said it will take aim at cryptocurrency-related pyramid schemes.

Earlier this month, reports also suggested that the Public Information Network Security Supervision agency under the Ministry of Public Security has been expanding the scope of its internet monitoring to overseas cryptocurrency exchanges that are servicing domestic investors.

PBoC image via Shutterstock

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