A senior Chinese central bank official has said that bitcoin and other digital currencies are not legal tender and have no value. According to the senior official, the People’s Bank of China is looking to take measures to stop digital currency-related activities in the country completely.
to the Report Crypto Potito, the Chinese government, continues its targeted efforts to stop the use of digital currencies in the country and has once again warned its citizens of the dangers associated with digital currencies.
“Digital currencies are nothing but risky investments,” Yin Youping, deputy director of the Financial Services Consumer Protection Bureau at the People’s Bank of China, told a news conference on August 27 (September 5), according to a Chinese local media outlet. ».
He urged Chinese investors to protect their assets by avoiding digital currency transactions and raising awareness of the risks of such investments.
The central bank official said:
We remind people once again that digital currencies like Bitcoin are not legal currencies and have no real value.
Hooping added that the People’s Bank of China is seeking tougher measures to completely shut down digital currency trading activities in cooperation with other regulators. These measures include identifying foreign exchange offices and domestic traders, as well as shutting down all websites, programs and companies active in the field of digital currencies.
The People’s Bank of China is planning to expand the publicity of these policies through government agencies and other channels operating in the country, in order to finally see a complete cessation of digital currency transactions in China.
Yoping said the People’s Bank of China intends to introduce a system that will make it easier to deal with digital currency-related activities by encouraging people to report violations immediately.
The Chinese government has stepped up its bans on the digital currency industry in recent months to prevent the country’s digital currency market from growing rapidly.
A few months ago, the People’s Bank of China ordered all banks and financial institutions in the country to stop providing digital currency-related services to real and legal customers, and warned that otherwise their licenses could be revoked.
The bans imposed by the Chinese government have had many negative effects on the digital currency industry, including a 50 percent drop in the price of bitcoin after the historic high of April. But pressure from Chinese authorities does not end with a ban on digital currency trading.
The ban on bitcoin miners in the world’s most populous country has also dealt a severe blow to the digital currency industry.
Following the widespread ban on digital currency mining in China, the Bitcoin network has experienced four consecutive hard declines for the first time in 10 years.
China, which once accounted for more than 50 percent of bitcoin mining operations, eventually forced miners to relocate to countries with better digital currency relationships.