Chinese central bank executive: crypto adoption is a ‘huge challenge’

As per the warning by the Chinese central bank executive, the quick acceptance of cryptos such as Bitcoin (BTC) stances a ‘huge challenge’ for the traditional financial system.

The director of the payment and settlement department at the People’s Bank of China (PBoC), Wen Xinxiang, has highlighted fears over the increasing fame of cryptos and fiat-pegged stablecoins.

Aiming at the market value of BTC presently exceeding $800B and the entire stablecoin market capitalization surpassing $120B, Xinxiang highlighted huge chances linked with the cryptocurrency market at a payment and clearance forum, reported by Shanghai Securities Journal.

Xinxiang too debated that the illegal secrecy of cryptos creates eye-catching equipment for easing unlawful transactions like money laundering, arguments for further measures for the traditional financial system to strive with cryptocurrency:

“The challenge of virtual currency is huge. When the traditional financial system responds to the competition in the financial industry from big tech companies, it can also rely on traditional methods such as law and supervision to increase anti-monopoly efforts and strengthen personal privacy and information protection.”