Sunday, April 6, 2014

PBOC Officials Discuss Bitcoin as China’s Central Bank Stays Silent on Rumours

Following as-yet-unconfirmed rumors that the People’s Bank of China would move to block domestic banks from working with digital currency exchanges this April, the price of bitcoin has declined substantially since 26th March, dropping from a high of just over $580 to today’s low of $442 on the CoinDesk USD Bitcoin Price Index.

The decline has been exacerbated by the fact the People’s Bank of China (PBOC), the country’s central bank, has not yet issued a formal response. Notably, this lack of action sharply contrasts the events of 21st March, when the PBOC reacted quickly to quash rumours it would ban bitcoin.

As of press time on 31st March, no official word had yet been given as to whether the PBOC’s stance toward bitcoin exchanges has altered.

However, two PBOC officials had independently addressed bitcoin, one via his personal microblogging site and the other at a speaking engagement at last Friday’s 2014 China Internet Conference.

The officials offered seemingly contrasting takes on bitcoin and other digital currencies – with the former advising Chinese citizens to “cherish life, walk away from bitcoin”, according to The Wall Street Journal, and the latter suggesting that bitcoin was a novel currency.

Though the statements may not reflect attitudes at the PBOC, they provide an insight into how the issue is perhaps being discussed at the major financial organization.

- Source, Coin Desk: