People’s Bank of China research institute director supports state-backed cryptocurrency concept

While China chose prohibitive policy towards unregulated digital currency market, the situation with state-backed cryptocurrency trade in this country might turn out to be different. At least, the latest statements from the representative of the country’s central financial regulator, People’s Bank of China, suggest that the government should consider the possibility of state-issued cryptocurrency. To be more precise, Yao Qian is the Director of the Digital Currency Research Institute subsidiary to the People's Bank of China. Also, Mr. Qian didn’t miss the opportunity to tell that Bitcoin’s price is not supported by anything but market speculation.

Russian officials once mentioned the similar initiative, but judging from the news patterns from this country, this issue is not in the list of primary and immediate ones. Another potential state cryptocurrency issuer can emerge in Gulf countries, as Abu Dhabi, for instance, has lately demonstrated an interest in financial blockchain.

The news from China might come from the fact that Japan now has 61% of cryptocurrency market share, benefitting from ICO bans in China and South Korea. The Chinese government, while clearly not ready to lift the ban, might want to increase competitiveness of their economy in the cryptosphere by being the first country to issue state-backed cryptocurrency. However, they should not withhold their decision, as some other swifter countries might outrun them in this.