Nov 08, 2018 07:40 AM

Cryptocurrency ‘Bubble’ Risk Cited by Central Bank

The People's Bank of China. Photo:VCG
The People's Bank of China. Photo:VCG

China’s central bank warned of “obvious bubbles” in blockchain-related financing and investments involving cryptocurrencies, especially in Initial Coin Offering (ICO) activities.

The government should strengthen supervision of the sector and prevent financial risks, argues a working paper published Tuesday. The paper, titled “What can a blockchain do and not do?” was written by Xu Zhong, director of the Research Bureau of the People’s Bank of China, and central bank analyst Zou Chuanwei.

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