Chen Weigang, former Vice President of China Insurance coverage Regulatory Fee of the Communist Get together, sat down with Yiben blockchain media
Chen Weigang, former Vice President of China Insurance coverage Regulatory Fee of the Communist Get together, sat down with Yiben blockchain media on Feb 27 to speak about ICO laws and digital forex buying and selling in China. He informed the media {that a} central financial institution digital forex (CBDC) is a crucial strategic plan for the Chinese language RMB to realize an higher hand in worldwide financial growth.
Through the interview, Chen was requested to touch upon the continuing ICO Ponzi schemes in China. Chen believed that ICOs and cryptocurrency buying and selling wanted to be banned utterly sooner or later. He added that:
“I all the time imagine that hypothesis in cryptocurrency and ICO shouldn’t be the course of monetary growth and should be resolutely banned.”
One of many principal difficulties in regulating such pyramid schemes is there is no such thing as a clear supervision division within the present regulatory framework. Chen thinks that with a view to crack down on the ICO scams and cryptocurrency speculations, all regulators together with China’s banking and insurance coverage regulatory fee, China securities regulatory fee, public safety group and Web and cultural authorities ought to work collectively.
Though Chen thought cryptocurrency hypothesis was unlawful, he identified that digital property buying and selling was a unique story. He stated that digital property had been tradable with fiat currencies. He commented that:
“As for digital forex transactions, I imagine that the supervision of assorted departments within the nation will turn out to be an increasing number of strict, leaving no marketplace for transactions. For instance, Banks and formal cost establishments will probably be prohibited from offering channels for digital forex transactions. Personal offers might proceed, however they won’t be mainstream.”
CBDC wasn’t born yesterday
China has been making ready for DCEP (Digital Foreign money Digital Fee) ever since 2015 in keeping with Chen. He defined that DCEP’s direct peg to the Renminbi was an necessary nationwide technique to China. He added that.
“We should be forward of the remainder of the world, at the very least technologically. Solely on this approach canthe RMB take the initiative sooner or later worldwide financial growth.”
In December 2019, Chinese language media reported that the central financial institution was planning to conduct the primary real-world take a look at of its CBDC. The venture has been in growth slowly, nevertheless it reportedly accelerated final yr when Fb’s Libra was formally introduced.