Bitcoin Price Up 2%; PBOC To Take Further Action Against Crypto

Investing.com – Bitcoin prices gained on Monday, despite reports suggested the People’s Bank of China (PBOC) would likely take further action against cryptocurrencies.

was trading at $7,122.7 by 12:05AM ET (04:05GMT) on the Bitfinex exchange, up 2.2% over the previous 24 hours.

, the world’s second largest cryptocurrency by market cap, jumped 5.2% at $409.8 on the Bitfinex exchange.

’s XRP token gained 3.6% to $0.50587 on the Poloniex exchange.

Meanwhile, also surged 3.6% to $121.07.

China’s PBOC revealed it would be taking further action against cryptocurrency in the country, reports over the weekend suggested. In addition, the central bank is conducting research to develop its own digital currency, vice governor of the PBOC Fan Yifei said.

“First, we will intensify reforms and innovations to promote the central bank’s digital currency research and development; Second, the bank must strengthen supervision and rectify all types of virtual currencies,” said Fan.

Meanwhile, the PBOC’s director general of financial research, Sun Guofeng, said traditional cash has adverse effects on the economy’s interest rates and a central bank-issued cryptocurrency would strengthen interest rate measures. Sun then urged the central bank to speed up its R&D effort to develop such digital currency.

“In the long run, due to the lower natural interest rate, monetary authorities can incorporate negative interest rate policies into the normal monetary policy toolbox,” explains Sun Guofeng.

“While the central bank’s digital currency is conducive to the implementation of negative interest rate policies, the central bank should speed up the development of a central bank issued digital currency,” Sun added.

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