Anyone who read that as "China has no plans to ban Bitcoin" is engaging in wishful thinking. Read the actual text from the press conference.
Google automatic translation:
Q: Japanese public television:
There is a question about bitcoin, as China's central bank on Bitcoin development in China how to treat? Do you think bitcoin will bring what risks? The Chinese government should prohibit the use of bitcoins it?
A: Shengsong Cheng:
About Bitcoin problems, the People's Bank and other five ministries jointly issued a notice, I would like to emphasize, first, we propose, is not the true meaning of bitcoin currency. Second, we prompt the Bitcoin risk and made the request.
Bitcoin is a specific virtual goods. What I understand is called money? The first is the medium of exchange currency is widely accepted by society as a whole medium for the exchange of commodities. Monetary developments in the history of thousands of years, once the physical currency, the final form of physical currency is gold and silver. Like Marx said natural gold is money. The most essential characteristic of money is a medium of exchange and measure of value. Itself to be valuable, so it can be denominated. Since gold production is limited, it can not meet the growing social and economic development, so the gold standard collapsed. From the later seventies of last century, the world monetary credit system completely behind monetary credit system is a powerful force of national credit and forced the country, so we put the national currency, credit currency called legal tender.
We take a look at Bitcoin, Bitcoin is not having the characteristics of these currencies? As far as I know, the vast majority of countries do not recognize the Bitcoin currency status. Currency in circulation in addition to the media, the value of scale functions, there is a very important function is denominated instruments. Bitcoin itself is not denominated in the currency, nor as the quote currency is possible. Plunged wild speculation "currency" can be used as currency it? Bitcoin transactions for good, good investment, you need to pay attention to its risk. People's Bank and the relevant departments will continue to focus on the movements of Bitcoin and associated risks, strengthen the monitoring, analysis, and guide the public to establish a correct concept of money and investment philosophy. Thank you.
Key points here are 1) he refers back to the PBC notice on Bitcoin policy. That's the official position - banks, money transfer services, etc. can't be involved with Bitcoin. He's not indicating any change from that. And 2), the PBC is watching, monitoring, and will "guide the public to establish a correct concept of money and investment philosophy". China has serious capital controls. "Guidance" means telling (not asking) people to do or not do something. If further restrictions are needed, the PBC is ready to make them.
Google automatic translation:
Q: Japanese public television:
There is a question about bitcoin, as China's central bank on Bitcoin development in China how to treat? Do you think bitcoin will bring what risks? The Chinese government should prohibit the use of bitcoins it?
A: Shengsong Cheng:
About Bitcoin problems, the People's Bank and other five ministries jointly issued a notice, I would like to emphasize, first, we propose, is not the true meaning of bitcoin currency. Second, we prompt the Bitcoin risk and made the request.
Bitcoin is a specific virtual goods. What I understand is called money? The first is the medium of exchange currency is widely accepted by society as a whole medium for the exchange of commodities. Monetary developments in the history of thousands of years, once the physical currency, the final form of physical currency is gold and silver. Like Marx said natural gold is money. The most essential characteristic of money is a medium of exchange and measure of value. Itself to be valuable, so it can be denominated. Since gold production is limited, it can not meet the growing social and economic development, so the gold standard collapsed. From the later seventies of last century, the world monetary credit system completely behind monetary credit system is a powerful force of national credit and forced the country, so we put the national currency, credit currency called legal tender.
We take a look at Bitcoin, Bitcoin is not having the characteristics of these currencies? As far as I know, the vast majority of countries do not recognize the Bitcoin currency status. Currency in circulation in addition to the media, the value of scale functions, there is a very important function is denominated instruments. Bitcoin itself is not denominated in the currency, nor as the quote currency is possible. Plunged wild speculation "currency" can be used as currency it? Bitcoin transactions for good, good investment, you need to pay attention to its risk. People's Bank and the relevant departments will continue to focus on the movements of Bitcoin and associated risks, strengthen the monitoring, analysis, and guide the public to establish a correct concept of money and investment philosophy. Thank you.
Key points here are 1) he refers back to the PBC notice on Bitcoin policy. That's the official position - banks, money transfer services, etc. can't be involved with Bitcoin. He's not indicating any change from that. And 2), the PBC is watching, monitoring, and will "guide the public to establish a correct concept of money and investment philosophy". China has serious capital controls. "Guidance" means telling (not asking) people to do or not do something. If further restrictions are needed, the PBC is ready to make them.
I un-bolded what you bolded, and instead bolded what I consider the most important part. What they understand as "money" is exactly what bitcoin is, or what it has the potential to become.
Governments don't get this. And once they do, then it will get exciting.
*edit* many thanks to Nagle for bringing this to my attention. Upon re-reading my post, it seems I came off a bit antagonistic. I simply wanted to illustrate that stuff can be spun any way you want to spin it.
