The PBC like to interfere in Q-coin issuance - Jongo News - Daily News of China

(The famale Q-pet by Tencent)
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Experts say that the virtual “Q-coin” is beginning to embody traits of actual currency and is becoming similar to a ”second Renminbi” in China. As this continues, the likelihood of the PBC stepping in to regulate matters is increasing.

Although Tencent maintains that the Q-coin can only be used in paying for value-added services provided by itself, as the expansion of issuance and the increase of the consumption continues, the Q-coin is in fact the paying tool most widespread in China’s virtual world. Moreover, many websites not connected to the company are providing two-way currency exchange services, and therefore the Q-coin is increasingly becoming the exchange unit of equal value to Renminbi.

“As a product, the Q-coin in theory can be issued without limitation; however, a prerequisite for fulfilment is that the consumer would like to purchase that product as many as it produced”, says Yuan Zhonglin, a staff of the integration marketing research department of Qinghua University. He thinks if enterprises launched virtual products without moderate consideration, then consumption disputes would soon follow.

At present, the issuance dealers of the virtual currency are under no administration’s supervision. As a result, Tencent may seek a paper profit by issuing an excess amount of the Q-coin or making false Q-coin consumption records.

Responding to this situation, the spokesman of the PBC (People’s Bank of China) indicates that if the development of the Q-coin becomes threatening in China financial market, a related administration will interfere in management, although it as a new paying tool is beneficial to active economy. .