1 week ago- News -
China’s Central Bank Issues Warning Against Blockchain Investment ‘Bubble’
According to Reuter report, that was published November 6, central bank of China and People’s Bank of China (PBoC) has warned against ‘bubbles’ or financial inconsistencies in blockchain-related financing and investment.
It is well known, that PBoC is anti-cryptocurrency stance. The bank advised government to keep a close eye on the cryptocurrencies, because of, as they stated exactly, “speculation, market manipulation and other irregularities”. They also claim that all of these things are common in domestic blockchain investment and financing schemes.
On November 6, the bank released there statement named: “What Can Blockchain Do and What Can it Not?”. That was where the first warning from them was stored. The paper was approved by the director of the Research Bureau of PBoC Xu Zhong:
“There are few blockchain projects that really land and produce social benefits. In addition to the low physical performance of blockchains, the shortcomings of blockchain economic functions are also important reasons. It should be based on continuous research and experimentation. Rationally objectively assess what the blockchain can and cannot do”
It was reported yesterday, that PBoC has increased the criticism on token aidrops. They characterize them as ‘disguised’ Initial Coin Offerings, which as we already know were banned in China in September. PBoC is also criticizing and warns government about fraudulent whitepapers and crypto investment projects.
In General, PBoC and Chinese government developed very positive attitude towards blockchain, but this week’s ambivalent tone of PBoC is unprecedented.