After some Chinese central bank officials criticized U.S. banks for their troubles in servicing cryptocurrencies in their recent statements. cryptocurrency continued to call for a strong reorganization of its units.
However, Chinese authorities bitcoin and collusion of cryptocurrency trading platforms, coin issuers, traders and market makers are extremely prone to market manipulation.
Zhou Xiaochuan, vice-chairman of the Boao Forum for Asia and former Chairman of the People’s Bank of China, said in his speech that every three to five years, the definition of a digital currency should not be “privileged” as technology and various application changes will change the situation.
Xiaochuan spoke at the Boao Asia Forum 2023 annual meeting “Financial Infrastructure and Financial Services in the Digital Age” sub-forum held on March 31.
People’s Bank of China Vice President Speaks Hard About Cryptocurrencies
Xuan Changneng, Vice President of the People’s Bank of China, said at a panel held at the Boao Forum on Friday, “The risks and fraud associated with cryptocurrency, including two American banks that have been in trouble after providing many services for cryptocurrency, from deposit acceptance to payment, and fraud, are a challenge to regulators. He showed that he should respect the rules while innovating in the regulation” and added:
“Cryptocurrency trading platforms include swaps with fiat currencies, leveraged transaction costs and other links in the process of executing transactions. These links are under the control of the trading platform, issuer, sellers and market makers. It is a very centralized structure.”
While there should be ample room for innovation, Changneng said authorities should “verify and approve new technologies applied to a variety of financial models and products, rather than simply accepting or approving them.”
Deputy Finance Minister Liao Min warned at the same Boao Forum panel that the digital financial infrastructure could break down in the future. He said China should be “deeply” involved in international cooperation and standard-setting coordination.
Li Bo, deputy director general at the International Monetary Fund, added that central banks globally should consider digitizing their reserves as part of measures to improve the efficiency of international payments.
*Not investment advice.
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