The Chinese central bank is planning to take further action against digital currencies in the coming months, according to media reports. Reuters on Thursday also reported that People’s Bank of China deputy governor Fan Yifei has confirmed that the country will develop its own digital currency.
The PBOC official made the Bank's intentions clear during a recent speech in which he affirmed the central bank's desire to put a stop to the spread of decentralized digital currencies within China. Since 2013, China has repeatedly tried to rein in Bitcoin and other cryptocurrencies, with varying levels of success. Analysts generally agree that the Chinese government's actions have been motivated by a desire to protect the country's native fiat currency, the renminbi.
The crackdown threat follows on the heels of a series of government actions targeting the digital currency space in recent months. The government has already taken steps to halt initial coin offerings in China, and moved against the nation’s domestic digital currency exchanges, decisions that dramatically impacted Chinese cryptocurrency investors and those exchanges – many of which left China to seek a more crypto-welcoming environment.
Rumors about China’s plan to develop its own cryptocurrency have been swirling for months. Officials had recently denied reports that the government had already created a PBOC cryptocurrency. This most recent revelation indicates that the country is still proceeding toward that goal, though it seems clear that the central bank intends to move forward in a deliberate manner.