Warning: Cryptocurrency Scams Are Posing as China's Central Bank

in #steemit7 years ago

The People's Bank of China (PBoC) has issued a new warning alleging that cryptocurrency projects are misusing its name in an effort to defraud investors.

Issued on 15th June, the announcement sought to make public the issue, while clarifying that the central bank has not issued any digital currency or authorized any institution to do so. Adding to that, it reiterated that there is no digital currency marketing team at the PBoC, nor does the institution consider applications of the technology legal tender.

The PBoC went so far as to warn Chinese consumers that so-called "digital currencies issued by PBoC" could be a part of a pyramid scheme.

The PBoC concluded that:

"We call on the public to establish a correct concept of money, cherish the RMB and maintain a normal circulation of RMB together."

In broader context, the comments are the latest that find China's central bank stepping up its regulation of the cryptocurrency sector. (Earlier this year, it sought to aggressively police domestic exchanges amid a surge in the bitcoin price.)

Lending plausibility to the scams, they also come at a time when the PBoC is actively increasing its blockchain research and development, and former representatives of the institution have begun to up about the technology and its potential impact.

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Thanks for this report. Most crypto news is one sided hype. Followed, resteemed, tweeted.

You are totally right. Not always there has to be good news. Cheers

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