Cryptocurrencies, according to a Chinese central bank official, have no real value.

Despite their growing popularity, a Chinese central bank official does not believe Bitcoin (BTC) and other cryptocurrencies have any value.

According to local news outlet People's Daily Online, Yin Youping, deputy director of the People's Bank of China's (PBoC) Financial Consumer Rights Protection Bureau, said during a media briefing that these digital coins are solely speculative assets.

The general consensus was to steer away from the cryptocurrency markets.

To minimize financial losses, the official further recommended the people to stay away from the cryptocurrency industry.

“We warn the public once more that virtual currencies like Bitcoin are not legal money and have no intrinsic value,” Youping stated.

Youping stated that the central bank, along with appropriate agencies, will monitor overseas exchange and domestic traders in preparation of a possible comeback in virtual currency trading operations.

According to the article, the central bank is actively collaborating with the China Banking and Insurance Regulatory Commission's lead departments.

In light of the PBOC's adamant stance against the use of digital assets and blockchain, Youping also revealed plans to prohibit and crack down on crypto exchanges, apps, and corporate channels.

China's crypto market crackdown

China began its toughest crackdown on digital currency trading and mining since 2017.

Authorities have expressed concerns that the new asset class could be used for illegal activities such as money laundering, and that it could exacerbate climate difficulties in the country due to the rising energy demands of crypto farms.

Last month, the People's Bank of China (PBOC) reaffirmed China's stance on digital assets, stating that it will continue to exert severe regulatory pressure on the crypto market.

China is developing its own virtual money.

Although China is not embracing cryptocurrencies, it is already developing its own central bank-issued digital currency.

According to the PBOC, more than 20.8 million people in China are currently utilizing the digital RMB wallet, with over 70.7 million transactions totaling $5.3 billion completed so far.


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