Central Bank Governor Zhou Xiaochuan: The impact of technologies such as digital currency and blockchain is unpredictable and needs to be regulated

Today, People's Bank of China Governor Zhou Xiaochuan, Deputy Governor Yi Gang, Deputy Governor and Director of the State Administration of Foreign Exchange Pan Gongsheng, and Deputy Governor Fan Yifei appeared in the Multi-Function Hall of Media Center Beijing and answered questions from Chinese and foreign reporters on "Financial Reform and Development".

It is worth noting that at this press conference, Governor Zhou Xiaochuan also talked about digital currency and blockchain. He said:

“ Technologies such as digital currency and blockchain will have impacts that are difficult to predict. Problems that arise during the development process need to be regulated. ”

In fact, this is not the first time that Governor Zhou Xiaochuan has talked about digital currency and blockchain.

Back in April 2014, Governor Zhou Xiaochuan made his first public comment on Bitcoin, saying it was “an asset that can be traded, not quite like a payment currency. Like stamps, they are mainly collectibles.”

He said that as an asset transaction, Bitcoin does not fall within our jurisdiction, so there is no question of whether to ban it or not.

In early 2016, the central bank first proposed to launch a digital currency issued by the central bank as soon as possible. In an interview with the media, Governor Zhou Xiaochuan revealed that the central bank had actually started researching digital currency a long time ago. He said:

“From the perspective of the central bank, future digital currencies must do their utmost to protect private privacy and find a balance between protecting privacy and combating illegal and criminal activities.”

According to Governor Zhou Xiaochuan, the central bank's issuance of digital currency mainly reflects the following principles:

One is to provide convenience and security.
The second is to strike a balance between protecting privacy and maintaining social order and cracking down on illegal and criminal activities, especially retaining necessary containment measures against crimes such as money laundering and terrorism.
Third, it should be conducive to the effective operation and transmission of monetary policy.
Fourth, it is necessary to retain control over monetary sovereignty. Digital currency must be freely convertible and at the same time controllably convertible.