Chen Weigang, former vice-president of the Communist Party's China Insurance Regulatory Commission, sat with Jiben Blockchain media on 27 February to discuss regulations on ICO and digital currency trading in China. He told the media that the central bank's digital currency (CBDC) is an important strategic plan for the Chinese RMB to gain an advantage in international economic development.
During the interview, Chen was asked to comment on current ICO Ponzi programs in China. Chen believed that the ICO and crypto currency trading should be completely banned in the future.
One of the main difficulties in regulating such pyramid programs is the lack of a clear division of supervision in the current regulatory framework. Chen believes that all regulators, including the Chinese Banking and Insurance Regulatory Commission, the Chinese Securities Regulatory Commission, the public safety organization and Internet and cultural authorities, should cooperate in order to address ICO fraud and cryptocurrency speculation.
Although Chen believed that cryptokurrency speculation was illegal, he pointed out that trading in digital assets is another story. He said that digital assets are tradable in fiat currencies.
According to Chen, China is preparing for DCEP (Digital Currency Electronic Payment) from 2015. He explained that the direct relationship between DCEP and Renminbi is an important national strategy for China.
In December 2019, the Chinese media reported that the central bank is planning to carry out the first test under real conditions of its CBDC. The project has been developing slowly but reportedly accelerated last year when Libra was officially announced on Facebook.
