Chinese Central Bank Reaffirms Its Sentiment: Blockchain – Not Bitcoin

The Shanghai branch of the People’s Bank of China recently commented the situation revolving around cryptocurrencies. As the announcement published in the news this Friday shows, the Chinese central bank observed a resurgence in the cryptocurrency related speculation through ICOs, IEOs, STOs and other capital raising or token distribution methods.

The crypto news show the Chinese central bank announcement in full, continuing to argue about the sale of tokens for Bitcoin, Ethereum and other virtual currencies and how it remains “essentially unauthorized illegal public financing, suspected of illegal sale of tokens, illegal issuance of securities and illegal fund-raising.”

The PBoC Shanghai branch also added that crimes via cryptocurrencies have “seriously disrupted the economic and financial disorder.” As such, the Chinese central bank noted that it will keep “monitoring the virtual currency business activities within the jurisdiction,” which will be “disposed of immediately” if discovered.

BREAKING 🚨🚨🚨

PBOC Shanghai Head office just made a new regulatory update as

“Strengthen regulation and control, clamp down cryptocurrency trading” pic.twitter.com/zL0BgOJBUF

— Dovey "Rug the fiat" Wan (hiring) (@DoveyWan) November 22, 2019

The Chinese media and analysts echoed this decision, which comes shortly after the leading state-run publicaiton named Xinhua released an entire article about Bitcoin. The article translates to ‘Bitcoin: The First Successful Application of Blockchain Technology’ and was seen by many on Twitter – being described as a groundbreaking development for the crypto space.

The head of the crypto focused venture fund Avon Ventures (which is a fund that is affiliated with Fidelity) reminded his followers that this article – while explaining the ins and outs of Bitcoin – calls the cryptocurrency “highly concentraded/centralized” phenomena and something that is bad for the climate or used for black market transactions.

Chinese state media (read: government) calls bitcoin:

•centralized
•bad for climate
•only used for black market txs

In other news, black is white, up is down, and China is good for the environment, definitely not centralized, and 100% only does good. https://t.co/ivzOKu35sO

— Alex Thorn (@intangiblecoins) November 11, 2019

What’s important at this point is the fact that the Chinese central bank is the first to bash digital assets through an article. The People’s Daily which is another state-run outlet in China reminded the people that Xi’s support for blockchain does not equate to support for crypto earlier this year, noting:

“The rise of blockchain technology was accompanied by that of cryptocurrencies, but innovation in blockchain technology does not mean we should speculate in virtual currencies.”

With a mixed climate and mixed reactions from the media, it is up to the Chinese to decide what does Bitcoin present and what could it change in the national and global economy.