Central Bank: Bitcoin and other virtual currencies are not legal tender and have no actual value support

On August 27, at the media briefing for the 2021 "Financial Knowledge Popularization Month, Financial Knowledge into Thousands of Households, Strive to be Rational Investors and Good Financial Internet Users" event, Yin Youping, Deputy Director of the Financial Consumer Rights Protection Bureau of the People's Bank of China, stated that virtual currency-related transactions are purely investment speculation. The general public should enhance their awareness of risks, stay away from them consciously, and protect their own "wallets."

At the media briefing, Yin Youping introduced that in response to the possible rebound in virtual currency trading operations, the central bank has worked with relevant departments this year to carry out active response work in terms of testing overseas exchanges and domestic traders, blocking and cracking down on trading websites, apps and corporate channels, and strengthening policy publicity. The heat of virtual currency trading speculation has declined significantly.

It is reported that as a member unit of the ministerial joint conference on dealing with illegal fund-raising, the central bank actively cooperates with the leading department, the China Banking and Insurance Regulatory Commission, and has done a lot of work in various aspects such as system construction, monitoring and early warning, crackdown and disposal, publicity and education, and resolutely cracks down on illegal fund-raising activities carried out in the name of virtual currency and blockchain.

Yin Youping revealed that in the next step, the central bank will establish a normalized working mechanism, maintain a high-pressure situation, and continue to crack down on virtual currency-related transactions. If the general public finds any clues of illegal fund-raising crimes, they should report them to the relevant departments in a timely manner. (People's Daily Finance)