Say what? PBOC Official says there is “space for Bitcoin to exist”

Deputy Secretary of the People’s Bank of China’s (PBOC) Survey and Statistics Department, Xu Nuojin, stated that there is “room

Deputy Secretary of the People’s Bank of China’s (PBOC) Survey and Statistics Department, Xu Nuojin, stated that there is “room for Bitcoin to exist” as part of comments delivered on how the internet will shape finance in the future. His comments were reported by Chinese finance site money.613.com and translated by reddit user looking to bring deeper insight into the China happenings to the English-speaking world.

Nuojin delivered a set of “ten commandments” on how greatly the internet will shape financial systems from a China perspective. Although Bitcoin is only addressed in one, all ten are equally applicable to Bitcoin:

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(1) The internet is “virtual”, and so is finance. The whole system is really just a bookkeeping system recording debts and liabilities between people. So the two will integrate more and more, obviating the need for physical bank branches.

(2) The internet can be accessed 24/7, extending the traditional boundaries of time and space in banking.

(3) There will be breakthroughs in monetary and financial sovereignty, “and there is space for Bitcoin to exist.

(4) Internet banking will reduce the costs of banking, thereby bring down interest rates.

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(5) Massive amounts of information obtainable through the internet will help us control risks by, for example, verifying creditworthy customers.

(6) Credit card transactions, which have traditionally been performed in person, will now be done online.

(7) Internet finance may spawn financial giants, and some may become financial giants themselves [there have been such discussions about Facebook]. Existing financial giants may conglomerate to become even bigger giants.

(8) Specialized operations and industry restrictions will bring the financial and physical worlds together.

(9) The financial space will become more competitive in terms of customer service, product marketing and the tailoring of services.

(10) Internet finance will impact traditional concepts of financial regulation.

While it may not be that much, many will say these are major words coming from the PBOC. Others have downplayed the whole notion of PBOC restrictions altogether, saying they aren’t opposed to Bitcoin as much as it is to capital flight out of the country, which some view as part of a greater exploitation of China by others.

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