Benoit Coeure, a member of the European Central Bank (ECB) Executive Board, believes the renminbi will eventually become a major international currency. He also warns about the bitcoin bubble, reminding that the bitcoin is not a currency but a speculative investment.
The People’s Bank of China (PBoC) issued last week a statement banning ICOs, while also planning to shut down local cryptocurrency exchanges. In order to combat capital flight, money laundering and other fraudulent activities, Chinese authorities have decided to disallow trading between fiat currencies and digital currencies within China. This has led to prices of cryptocurrencies such as bitcoin sliding over the weekend.