Chinese Central Bank executive considers crypto adoption a massive challenge

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Crypto adoption is gradually becoming an issue for most of the world’s governments. This year saw a widespread surge in crypto investment and adoption as well. While there are plenty of central banks planning their own CBDCs, the Chinese Central Bank (PBoC) is one of the first to do so.

Although the Chinese Central Bank released the digital yuan, the PBoC remains speculative of digital assets. In a recent statement, Wen Xinxiang, the director of the payment department of the Chinese Central Banks, mentioned that crypto adoption has multiple risks.

The Chinese Central Bank executive outlines the risks

According to Wen Xinxiang, a major issue with the legalization of cryptocurrencies is their anonymity. This particular trait of digital currencies will provide a lot of support to criminals and money launderers.

Speaking on the matter, Wen further added that the adoption of digital assets is a huge risk because it doesn’t adhere to supervision and law the same way as the traditional system. 

The Chinese Central Bank executive said that as the crypto payment system has the capacity to work without the involvement of banks, crypto adoption is difficult to integrate and legalize.

PBoC’s executives remain critical of cryptocurrencies

After the crypto crackdown on the mining farms led by the Chinese government, these remarks from the executive confirm the negative stance of PBoC on cryptocurrencies. Chinese officials have continued to express their concerns about the unregulated expansion of stablecoins and cryptocurrencies.

Back in the month of July, the deputy governor of PBoC, Fan Yifei, expressed his concerns regarding crypto transactions. He mentioned that the rate at which crypto transactions are increasing is “very alarming.”

We also saw the release of the offshore Renminbi, a stablecoin pegged on the digital yuan. This stablecoin is approved by the Chinese Central Bank, but its functioning has nothing to do with the digital yuan.

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