Chen Weigang Chinese Communist Party: ICOs and cryptocurrency needed to be banned completely, but CBDC is a different story
Chen Weigang, former Vice President of China Insurance Regulatory Commission of the Communist Party, shared about ICO regulations and digital currency trading in China. Sharing with the media, Chen said that a central bank digital currency (CBDC) is an essential strategic plan for the Chinese Yuan to gain the upper hand in international economic development.
Chen Weigang: ICOs and cryptocurrency transactions need to be banned entirely in the future
When asked about the ongoing Ponzi ICO programs in China, Chen said that ICOs and cryptocurrency transactions need to be banned entirely in the future.
He said:
“I always believe that speculation in cryptocurrency and ICO is not the direction of financial development and must be resolutely banned.”
Chen Weigang, former Vice President of China Insurance Regulatory Commission of the Communist Party
One of the main difficulties in adjusting such pyramid schemes is that there is no clear supervisory division in the current regulatory framework. Therefore, to crack down on ICO scams and cryptocurrency speculation, the simplest way is that all regulatory agencies, including China’s banking and insurance supervisory committee, regulatory commission Chinese contractors, public security organizations, and the Internet and cultural agencies should work together.
Although Chen thinks cryptocurrency speculation is illegal, digital trading currencies is a different story. He said that digital assets could trade with fiat.
Chen said:
“As for digital currency transactions, I believe that the supervision of various departments in the country will become more and more strict, leaving no market for transactions. For example, Banks and formal payment institutions will be prohibited from providing channels for digital currency transactions. Private deals may continue, but they will not be mainstream.”
The Digital Currency Electronic Payment project was incubated four years ago
As Chen shared, China has been preparing for DC / EP (Digital Currency Electronic Payment) since 2015. Chen explained that DCEP’s DCEP’s direct peg for the Renminbi is an important national strategy for China. Quoc.
He added that:
“We have to be ahead of the rest of the world, at least technologically. Only in this way can the RMB take the initiative in the future international economic development.”
In December 2019, Chinese media reported that the central bank was planning to conduct the first real-world test of CBDC. The project was slowly developing, but it sped up last year when Facebook’s Libra was officially announced.
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