People’s Bank of China Proclaims Bitcoin is Not a Legitimate Payment Method

The Governor of the People’s Bank of China, Zhou Xiaochua, has announced that the central bank does not accept Bitcoin or any other digital currencies as legitimate forms of payment.

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According to Reuters, China’s annual parliament session took place on Friday, where Zhou Xiaochua had a chance to address the current scope of cryptocurrencies in China with reporters. “We do not currently recognize Bitcoin and other digital currencies as a tool like paper money, coins and credit cards for retail Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term,” he said, adding: “The banking system does not accept it.”

According to Zhou’s statements, China was initially for the creation of the Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term, and even implemented some of the existing technology in certain sectors of the economy. However, concerns over the rapid applications of the technology were overwhelming and led to concerns over the potential risks associated with it.

Zhou added: “If they spread too rapidly, it may have a big negative impact on consumers. It could also have some unpredictable effects on financial stability and monetary policy transmission.”

China’s Ongoing Crypto Crackdown

Cryptocurrencies have been the topic of discussion among Chinese regulators over the past year. After clamping down on crypto trading by closing cryptocurrency exchanges, China took matters to the next level in September of last year, by issuing a complete ban of ICOs in the country. The ban was implemented without notice, and was effective immediately, which cause a strong reaction across the market.

China was not done with its crackdown. The next step was to address the expanding sector of Bitcoin mining, due to the increasing number of mining operations that were turning up across mainland China. The government assessed the situation, and followed that by asking mining companies and operations to begin making an “orderly exit” from the country.

Just a few weeks later in early February, China’s government decided to block access to all cryptocurrency websites from within China, thereby limiting any exposure to the industry for its citizens.

The decisions caused the market to decline substantially across the board, and took place just after an influx of crypto investors.