Why crypto adoption is a threat to China – PBOC

TL;DR Breakdown Wen Xinxiang a PBOC director gives reasons crypto adoption is a problem for China.Mr.Wen says cryptos are a threat to traditional finance and banks. An executive of the People’s Bank of China (PBOC), Wen Xinxiang, has explained why crypto adoption is a problem for the Asian country. Mr Wen is the director of payment and settlement at the PBOC, expressed concerns over the growing popularity of cryptocurrencies and fiat-pegged stablecoins. While speaking at a forum on Friday, the PBOC director highlighted several reasons crypto adoption is a problem for China. He pointed at the market value of Bitcoin at $800 billion and the total stablecoin market capitalization exceeding $120 billion. With this, he noted that the major risk outlined with the crypto market is the fact that the industry is capable of operating separately from the traditional payment system supported by commercial banks and payment institutions. Other reasons Crypto adoption is a threat for China Mr Wen noted that crypto adoption is an issue for payment services offered by banks as they weaken the power of clearing organizations. The PBOC director also argued that the anonymity of cryptocurrencies makes it an attractive tool for facilitating illegal transactions such as money laundering. He called for the improvement of the traditional financial system to enable it to compete with cryptocurrencies. Wen noted that the digital asset world faces a l...