Ex-Governor of PBoC: China should take precautions against Libra trend

Ex-Governor of PBoC: China Should Take Precautions Against Libra Trend

The former governor of the People’s Bank of China (PBoC) says that “China must take precautions” against the trend represented in the Libra Facebook cryptocurrency.

Chinese crypto news source from China CnLedger reported on Xiaochuan Zhou’s comments on July 9th.

Zhou, in particular, served as governor of PBoC between 2013 and 2018, at a time when Beijing was pursuing its notorious onslaught of anti-crypto rules, including the historical general criminalization of the original coin proposals (ICO) and the crackdown on the exchange.

CnLedger reports that Zhou described Libra as a representative of the global trend in cryptocurrencies – highlighting its properties like stable coins and ambitions to overcome the painful points of cross-border remittances in developing countries.

No less indicative, according to Zhou, is the fact that the sign will still face such problems as compliance with the rules for combating money laundering and depositing funds.

Contextualizing this tendency in a broader sense, Zhou reportedly stated that “people who value Libra are inseparable from the global trend of dollarization,” and that China needs to maintain a strong monetary status, take precautionary measures and conduct thorough political research.

The former governor also predicted in a CnLedger summary that:

In the future, a more internationalized, globalized currency may appear, a currency so strong that it forces major currencies to establish exchange relations with it. Perhaps this is not necessarily Libra, but there will be more institutions, and people will try to create it.

As previously reported, Beijing’s view that the underlying principles of the crypto revolution — disintermediation and disinterested value — would undermine its strict capital controls and economic strategy, led to a series of attempts to isolate both its internal financial system and individual investors from the global crypto space.

PBoC’s current Deputy Governor, Pan Gongsheng, recently described security tokens (STO) proposals as “illegal” financial activities similar to those of ICO, claiming that both of these operations are still widespread in mainland China, despite the increasingly dangerous the position of the authorities.

Meanwhile, the United States Congress demanded a hearing on the upcoming Libra on Facebook and requested that Facebook and its partners impose an official moratorium on the development of Libra until its problems are considered and considered.

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About Viktor Sokolov 88 Articles
Nerd, entrepreneur & coffee aficionado. Believes that blockchain infrastructure and bitcoin will be the money system of the coming decades. Trying to make visible what this means for technology, economy, companies and societies.

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