Huang Zhen: China should create a national cryptomonage

Over the past few days, many rumors have circulated about the future of cryptomonas in China. Chinese regulators have forced major exchange platforms like BTCChina and Huobi to close their operations by the end of the month. Uncertainty about the future of cryptomonas in China has led to a significant decrease in the prices of bitcoin and other cryptomonas.

A national cryptomony?

While Chinese regulators are cracking down on cryptomony exchange platforms, many believe that the Chinese central bank could issue its own digital currency. Huang Zhen, researcher at the Central University of Finance and Economy, said that:

"The PBOC should launch its own sovereign digital currency as quickly as possible. "

Zerohedge explains his reasoning:

In order for the Chinese government to prevent and control the risks associated with digital currencies, it has decided to prohibit the issuing of tokens around the ICOs, stop trade in cryptomonials on exchanges, better protect interests Chinese investors and preserve the financial security of China. The sovereign state remains a fundamental actor of world politics. Cryptomonials and other digital currencies attempt to challenge the sovereign's right to issue currency, which requires the nationalization of the issue of these currencies. China has a clear understanding of the various forms of digital money. The central bank has set up a group and a research institute on digital currencies to explore the possible digitization of sovereign currency. After this cycle of monitoring marketplaces supplying cryptomonas, we expect that, under the control of the Chinese central bank, we are launching our own sovereign digital currency. This should happen as soon as possible to help China maintain its leadership in the development of global digital finance.

The Chinese authorities fear that a large part of the capital leaves China through cryptomonas like the Bitcoin. A digital currency issued by the central bank of China would prevent new flows of capital from the country. A recent article also mentioned the possibility of the Indian central bank issuing its own national cryptomonality. There is no doubt that government officials are increasingly concerned about the possibilities offered by cryptomonas, but the question remains as to how they intend to regulate them.