Have you heard enough on the RMB revaluation debate? Well what do you know about the QQ revaluation debate?
Actually, there is no such debate, but there is a thread of concern running through the PBOC about this QQ stuff – what is it? QQ is a virtual currency – it exists only online, but it has a value in the real world: roughly 1 QQ = 1 RMB.
The so-called "QQ" coin – issued by Tencent, China’s largest instant-messaging service provider – has become so popular that the country’s central bank is worried that it could affect the value of the yuan. Li Chao, spokesman and director of the General Office of the People’s Bank of China (PBOC), has expressed his concern in the Chinese media and announced that the central bank will draft regulations next year governing virtual transactions.
Public prosecutor Yang Tao issued this warning: "The QQ coin is challenging the status of the renminbi [yuan] as the only legitimate currency in China."
Some of us may recognize QQ as the popular Chinese instant-messaging software. I had no idea they have some kind of currency, which was created to facilitate legitimate online business transactions but has since moved into gambling … and perhaps e-prostitution? The article says that QQ coins to pay for "QQ girls" in "private chats".
I wonder if Hank Paulson is going to bring this up in Beijing this week?