Nov 7 – The People’s Bank of China (PBoC), the Central Bank of China has issued a warning against investment “bubbles” in Blockchain or Fintech related investments.
The PBoC, which is known for its anti-cryptocurrency stance, has reportedly advised that the government strengthen its supervision of “speculation, market manipulation and other irregularities,” which it claims are common in domestic blockchain investment and financing schemes.
PBoC released a working paper with all the details. According to think tank China Financial Forty Forum, the paper was authored by Xu Zhong, director of the Research Bureau of the PBoC, and states that:
“There are few blockchain projects that really land and produce social benefits. In addition to the low physical performance of blockchains, the shortcomings of blockchain economic functions are also important reasons. It should be based on continuous research and experimentation. Rationally objectively assess what the blockchain can and cannot do. “
Although PBoC and the Chinese political establishment have broadly adopted a positive stance towards blockchain, the PBoC’s ambivalent tone this week is not unprecedented, as other domestic regulators have similarly warned in the past against “mythologizing” the technology.