People's Bank of China

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People's Bank of China
Peoples Bank of China logo small.png
Founded 1948
Headquarters Beijng, China
Key People Zhou Xiaochuan, Governor
Website PBC Homepage

The People’s Bank of China ("PBOC") is the central bank of China. As a key member of the Multi-Agency Task Force on Internet Finance of China, the People's Bank of China plays an influential role in cryptocurrency regulation in China.

The PBOC restricted Chinese banks' business with bitcoin on December 5, 2013. In its statement at the time the PBOC said, “Currently, the public lacks sufficient understanding of Bitcoin, and some individuals have been caught up by faddishness or a speculative mentality in holding, using and trading in Bitcoins."[1]

In conjunction with one of the task force's first concerted actions, PBOC forbade cryptocurrency exchanges from operating in China in the autumn of 2017.

PBOC Vice Governor Fan Yifei said the PBOC was not only trying to supervise private digital currencies but also to develop its own digital money. Providing a guest view to Bloomberg in late August 2016 Fan wrote, "With internet access increasing and encryption technology improving, the conditions are ripe for digital currencies, which can reduce operating costs, increase efficiency and enable a wide range of new applications." Fan had earlier told Chinese news agency Caixin that the PBOC's goal in issuing a digital currency would be to lower the costs of supplying money to the economy. [2]

Governor Zhou Xiaochuan of the PBOC reportedly told a press conference on March 6, 2018 that digital currency is "technologically inevitable" and further stated, "We also pay high attention to the application of technologies like blockchain and distributed ledger." The PBOC had already set up a research project but Zhou indicated that it was not in a rush to develop its own digital currency.[3] Zhou also reiterated, “We do not currently recognize Bitcoin and other digital currencies as a tool like paper money, coins and credit cards for retail payments. The banking system does not accept it.”[4]