PBoC Warns Public Against Blockchain Investment Bubble

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Total News – Atlanta, GA 11/07/2018. People's Bank of China (PBoC) said that bubbles in blockchain financing are apparent. 

​PBoC stated in a form of a working paper that "the current bubble in the blockchain investment and financing sector is obvious. Speculation, market manipulation, and even violations of laws and regulations are common , especially for Token projects involving public offering transactions. Relevant government departments should strengthen supervision and prevent financial risks."

The working paper added:

"There are few blockchain projects that really land and produce social benefits. In addition to the low physical performance of blockchains, the shortcomings of blockchain economic functions are also important reasons. It should be based on continuous research and experimentation. Rationally objectively assess what the blockchain can and cannot do. "

The latest working paper was authored by Xu Zhong, Director of the Research Bureau of the People's Bank of China, and Zou Chuanwei, Associate Research Fellow, Research Bureau of the People's Bank of China.

It was previously announced that the bank is looking to clamp down on airdops. Initial Coin Offerings (ICOs) is already banned in China.

South China Morning Post reported in October that the central bank is hiring cryptography experts in an effort to develop its own fiat digital money.

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