Mo.bi - Crypto Currency Tracker logo Mo.bi - Crypto Currency Tracker logo
Cryptopolitan 2021-09-25 07:47:31

Why crypto adoption is a threat to China – PBOC

TL;DR Breakdown Wen Xinxiang a PBOC director gives reasons crypto adoption is a problem for China.Mr.Wen says cryptos are a threat to traditional finance and banks. An executive of the People’s Bank of China (PBOC), Wen Xinxiang, has explained why crypto adoption is a problem for the Asian country. Mr Wen is the director of payment and settlement at the PBOC, expressed concerns over the growing popularity of cryptocurrencies and fiat-pegged stablecoins. While speaking at a forum on Friday, the PBOC director highlighted several reasons crypto adoption is a problem for China. He pointed at the market value of Bitcoin at $800 billion and the total stablecoin market capitalization exceeding $120 billion. With this, he noted that the major risk outlined with the crypto market is the fact that the industry is capable of operating separately from the traditional payment system supported by commercial banks and payment institutions. Other reasons Crypto adoption is a threat for China Mr Wen noted that crypto adoption is an issue for payment services offered by banks as they weaken the power of clearing organizations. The PBOC director also argued that the anonymity of cryptocurrencies makes it an attractive tool for facilitating illegal transactions such as money laundering. He called for the improvement of the traditional financial system to enable it to compete with cryptocurrencies. Wen noted that the digital asset world faces a l...

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.