PBOC Official: One Day You Will See Bitcoin’s Dead Body Float Away In Front of You

China has no regrets about its decision to ban cryptocurrency exchanges, a top central bank official said over the weekend. In his view, by cracking down on cryptocurrency speculation, regulators may have prevented greater imbalances in the market.

Speaking at a financial summit in Shanghai over the weekend, People’s Bank of China (PBOC) vice governor Pan Gongsheng issued the following statement:

“If we didn’t shut bitcoin exchanges and crack down on initial coin offerings a few months ago, and if more than 80 percent of the world’s bitcoin transactions and financing activities were still taking place China, which was the case back in January, what would it be like today?”

The PBOC official reportedly likened bitcoin to a “dead body floating away in front of you,” which was a reference to a book by Professor Eric Pichet. The quote implied that there isn’t much we can do except watch bitcoin bubble from a distance before the inevitable burst.

Bitcoin has enjoyed record-setting gains throughout the year, as investors continuedo pour money into the asset class in anticipation of widespread institutional support. Prices crossed the five-figure mark last week before making a push toward $12,000 over the weekend. The gains have continued in spite of China’s efforts to rein in the digital currency system.

Chinese regulators issued their blanket ban on cryptocurrency and initial coin offerings in early September, citing growing financial risks. At the time, China was a major player in global crypto investment. Officials have reportedly considered scaling back their ban, although no announcement has been made to that effect.

In an October meeting run by the International Telecommunication Union, Yao Qian of the
central bank-run Digital Currency Research Institute argued in favor of a state-run cryptocurrency. In his view, a state-issued cryptocurrency could be a viable way to stabilize the yuan.

Earlier this year, South Korea followed the world’s second-largest economy in banning ICOs, but has remained non-committal on cryptocurrency exchanges. Regionally, Japan has moved to recognize bitcoin as an official form of payment.

At press time, bitcoin as trading at around $12,260, having reached a session high near $11,600 earlier.

Featured image courtesy of Shutterstock.

Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi