The People’s Bank of China (PBoC), one of the most anti-cryptocurrency statist entities in the world is sounding worried about the increasing popularity of digital currencies and decreasing popularity of fiat cash reserves. Even in China itself, cash is now taking the back seat as AliPay and WeChat Pay are removing the need for the fiat cash among the consumer base.
The concern in the voice of the Reserve Bank is clear as it declared that refusing to accept cash was illegal according to current regulations. In a statement, the PBoC said:
“In recent years, there have been problems with the circulation of renminbi cash, and the people’s response has been intense. Consumers at tourist areas, restaurants, and retail merchants have had their cash refused, which has damaged the renminbi’s legal status and consumers’ right to choose between payment methods.”
In recent months, more than 90 percent of sales in different parts of the Asian country were processed using digital payments system and other fintech applications rather than physical cash which shows that consumers are more than willing to move away from cash and are already preferring digital solutions, something that doesn’t sit well with the banking regulator.
Increase in mobile applications and digital payments system unavoidably leads to blockchain-based solutions and even cryptocurrencies themselves, something that is not ideal for a central bank like PBoC that has banned cryptocurrencies in the country in a sweeping measure. So, the bank is starting to oppose the over-digitization of the money in the country through every way possible.
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