Ex-President of PBoC explain why China banned crypto

The former president of the Chinese central bank explained why Chinese authorities banned digital assets operations and why it was necessary.

The whole world knows perfectly how China banned crypto-related operations before the rollout of the digital Yuan. Many times, many China supporters talked about the step of China ban in favour of public benefits. But still, many experts confirmed that China’s crypto ban was a well-planned idea to push the adoption of Chinese Central Bank Digital Currency (CBDCs).

Related: China’s crypto ban was well planned idea to push digital Yuan adoption

In the latest,  Zhou Xiaochuan, former president of People Bank of China, talked about the adoption of Central Bank Digital Currency by China and also shared his stance on the decision of China crypto crackdown as to why it was a necessary need.

President said that all other countries are trying to fit digital currencies in their economic ecosystem to use blockchain technology. But here the initiative of China is to use blockchain technology is different.

According to Zhou, the currency should have one perfect role that should be in favour of the traditional economy. If crypto-based digital assets can’t facilitate the payments in favour of the traditional economies then we can’t use crypto. And this was the main reason to bring the national CBDCs in the form of Digital Yuan. 

The statements of Zhou indicated that Digital assets are a threat to the traditional economy of China and they are not fit for the payment options because of high fees and scalability issues. 

Zhou also asserted that the Chinese central bank Digital Currency will bring advancement in the payment infrastructure of the Chinese economy and it will not only help big institutions or businesses but will also utilise the payment system for small businesses. 

Further, Zhou added that modern Cryptocurrencies can’t sustain their existence in the long term, because these are dependent on another currency. So we don’t think that Digital Currencies are a better option to fit in the traditional economy. 

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