People’s Bank of China Denies Launch of Digital Asset

Despite expectations of a Chinese currency backed by the Central bank, officials denied creating the asset.

People’s Bank of China denied the creation of a state-backed digital asset, despite giving earlier signals that it would be technically ready to launch the asset in November.

Officials denied launching any currency or currencies, as well as the availability of platforms to distribute or trade those currencies. Apparently, rumors of an official coin were spreading in the past days.

“The People's Bank of China has not issued legal digital currency (DC/EP) and has not authorized any asset trading platform to conduct transactions. The People's Bank of China has been studying the legal digital currency since 2014 and is still in the process of research and testing. The market transactions "DC/EP" or "DCEP" are illegally set digital currency, and the legal digital currency issuance time is inaccurate,” announced the central bank in an official statement.

PBOC is indeed testing its own digital asset, but has not released an official schedule for the launch. China has returned as a hotbed for crypto-related activity, with social media easily spreading rumors.

The central bank has a long history of exploring blockchain for its payment opportunities. However, the launch of a digital yuan has only been spread in incomplete news.

The stance of the Chinese government on cryptocurrencies, whether private or public, has swayed the markets multiple times. The government is lenient to some projects, but has cracked down on ICOs, as well as attempts to swindle retail investors with large-scale promises.

Chinese interest in crypto investment is heightened, especially after expecting favorable laws coming in 2020. But scams are also abounding, with Plus Token stealing as much as $4 billion’s equivalent in 2019, becoming one of the biggest scams.

Thus, the PBOC warned that any asset reportedly issued on behalf of the bank, or any investment opportunity, should be suspect of fraud.

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