China’s central bank: BTC has no value

China’s central bank reiterated its warning against BTC and other cryptocurrencies and stated that they were not legal tender and have no value.

The Chinese government continues its efforts to eliminate the use of cryptocurrencies in the country by constantly commenting on the risks associated with them. During a media briefing on August 27, Yin Youping, deputy director of the People’s Bank of China’s Office for the Protection of Financial Rights (PBoC), said that digital assets are nothing more than investment speculation.

He warned investors to protect their “pockets” by avoiding any cryptocurrency transactions and recognizing the risks associated with such investments.

“Once again, we remind people that virtual currencies like BTC are not legal tender and have no support for their value,” he said.

China’s central bank is working hard to stop trading of cryptocurrencies

Youping added that the PBoC is taking drastic measures to ensure that cryptocurrency trading is stopped in cooperation with other top regulators on all business websites, applications and corporate channels.

Yin Youping further revealed that the central bank will implement a system that normalizes interventions in cryptocurrency-related operations, which will encourage the general public to report such activities quickly.

In the last few months, the Chinese government has intensified its crackdown on the cryptocurrency sector to eliminate the presence of a rapidly growing market in the country. The country’s central bank has mandated all banking and financial services companies in China to stop serving individual and institutional crypto clients or to risk revoking licenses.

The restriction adversely affected the entire market, with BTC losing more than half of its value after reaching an all-time high in April. However, the Chinese authorities did not stop there. The sector suffered another massive blow when the government of the world’s most populous nation decided to target BTC miners and force them to shut down.

After a nationwide intervention, the BTC blockchain experienced for the first time in about ten years four consecutive negative adjustments to the difficulty of mining. China, once home to more than half of the world’s BTC mining community, has forced miners to move to other cryptocurrency-friendly countries.