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Former PBOC governor explains the reasons behind China’s crypto suppression

The former governor of the People’s Bank of China (PBOC) has share His views on CBDCs and their role in the modern economy also commented on the real reason for the cryptocurrency crackdown in the country.

Former PBOC Governor Zhou Xiaochuan

Zhou believes China will find and use the best possible way, while other countries use different avenues to introduce digital currencies into their economies.

The former governor of the PBOC stated that the most basic function of money is payment and store of value, which means that any currency must meet at least two of the above factors.

“With the introduction of CBDC, the economy will enjoy many advantages such as reduced costs, stability and convenience compared to traditional payment methods. Companies will also benefit from the digitization of the economy. Small businesses will be able to create a simpler and more efficient accounting framework, ”said Chu.

Regarding the recent measures taken by the Chinese government to combat cryptocurrencies, the former PBOC governor said it was “a contest for the survival of the fittest” as digital currency based on a decentralized blockchain is not the most convenient payment Method for the traditional economy so that it has to be abandoned because it is inefficient.

Speaking of which, Chu may have been referring to the issues that cryptocurrencies cannot mainstream, including high fees, network congestion, and slow transaction speeds.

However, China’s CBDC will also control people’s entire financial life, which is said to violate privacy and human rights, values ​​that the West and advanced countries have always defended. But when it comes to privacy, it is a luxury for the people of this country to have cameras monitored 24/7, both in real life and in cyberspace.

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

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