Chinese Communist Party Exec Wants State Monopoly on Digital Currency

Chen Weigang, former Vice President of China Insurance coverage Regulatory Fee of the Communist Celebration, sat down with Yiben blockchain media on Feb 27 to speak about ICO rules and digital forex buying and selling in China. He instructed the media {that a} central financial institution digital forex (CBDC) is a crucial strategic plan for the Chinese language RMB to achieve an higher hand in worldwide financial improvement.

Through the interview, Chen was requested to touch upon the continued ICO Ponzi schemes in China. Chen believed that ICOs and cryptocurrency buying and selling wanted to be banned utterly sooner or later. He added that:

“I all the time consider that hypothesis in cryptocurrency and ICO is just not the path of monetary improvement and should be resolutely banned.”

One of many fundamental difficulties in regulating such pyramid schemes is there is no such thing as a clear supervision division within the present regulatory framework. Chen thinks that in an effort to crack down on the ICO scams and cryptocurrency speculations, all regulators together with China’s banking and insurance coverage regulatory fee, China securities regulatory fee, public safety group and Web and cultural authorities ought to work collectively.

Though Chen thought cryptocurrency hypothesis was unlawful, he identified that digital property buying and selling was a distinct story. He mentioned that digital property had been tradable with fiat currencies. He commented that:

“As for digital forex transactions, I consider that the supervision of assorted departments within the nation will change into increasingly more strict, leaving no marketplace for transactions. For instance, Banks and formal cost establishments will probably be prohibited from offering channels for digital forex transactions. Non-public offers might proceed, however they won’t be mainstream.”

CBDC wasn’t born yesterday

China has been getting ready for DCEP (Digital Foreign money Digital Cost) ever since 2015 in accordance with Chen. He defined that DCEP’s direct peg to the Renminbi was an vital nationwide technique to China. He added that.

“We should be forward of the remainder of the world, no less than technologically. Solely on this means canthe RMB take the initiative sooner or later worldwide financial improvement.”

In December 2019, Chinese language media reported that the central financial institution was planning to conduct the primary real-world check of its CBDC. The undertaking has been in improvement slowly, however it reportedly accelerated final 12 months when Fb’s Libra was formally introduced.