The People’s Bank of China (PBoC) is on the lookout for crypto-related professionals according to an official document published on the bank’s website. PBoC opened four positions for engineers with experience in blockchain and cryptography, security and chip design to work at their Digital Money Institute.
State Virtual Currency
According to the document, the professionals will develop a secure big data platform that would process crypto transactions in China. The job description will include the creation of an encryption technology and security models, digital currency-related software systems and a transaction terminal chip technology research and development.
The bank also plans to hire professionals with experience in economic law and finance to handle legal and policy research on digital currency and risk management.
This news comes on the heels of the recent op-ed published on CN Finance, a local finance journal linked with the PBoC, where experts at the bank warned the government of the potential of recently launched USD-backed stablecoin to impact the yuan negatively. The experts argued that the presence of USD-backed stablecoins like USDT, GUSD, PAX, TUSD would increase the dominance of the U.S. Dollar on a global scale, and it will invariably suppress the Yuan in the future. The researchers also stated that stablecoins is the future of currencies and they believe that the evolution of the monetary system will be achieved b a state-backed digital currency.
China has been planning to develop a sovereign virtual currency for a while now, according to the South China Morning Post. Based on the report, the PBoC had inaugurated a research team in 2014 and intensified moves last year with the creation of the Digital Currency Research Institute, headed by a senior official of PBoC’s technology arm, Yao Qian.
The research institute, whose hire has mostly been experts in computer science, will be making its first set of crypto and blockchain hires. While the People’s Bank of China has not revealed any timeline for the launch of its state-backed stablecoin, Zhou Xiaochuan, a former PBoC chief stated that the bank was developing a digital currency that “must ensure the smooth running of monetary and financial stability policies and at the same time protect consumers.”
“For us, the direction of virtual assets requires caution … from China’s perspective, virtual asset transactions are not in line with our idea that finance must serve real economic growth,” he added.
The PBoC, while working to create a state-backed stablecoin, hailed the success recorded by the country’s stringent restriction on crypto related activities, in a public notice last month.
“The global share of domestic virtual currency transactions has dropped from the initial 90% to less than 5%, effectively avoiding the virtual currency bubble caused by skyrocketing global virtual currency prices in the second half of last year in China’s financial market. The impact has been highly recognized by the community.”
The bank also issued separate warnings, reminding investors of the risks associated with Initial Coin Offerings and crypto trading, which it argues can pose a “serious disruption” to the “economic, financial and social order.”
“[ICOs are] suspected of illegally selling tokens, illegally issuing securities, illegal criminal activities, financial fraud, pyramid schemes, and other illegal and criminal activities.”
The Chinese government banned cryptocurrencies as far back as 2017, which led to the closure of the country’s exchanges including Binance and OKEx. The government has been quite vocal about its stance on crypto since then. It even followed it up with an onslaught of anti-crypto measures in the summer such as a blanket ban on commercial venues from hosting crypto related events in certain districts in China. Popular Chinese tech companies such as Baidu, Alipay, and Tencent also tightened their monitoring to ban media accounts and transactions of companies engaging in crypto and blockchain related activities.