China is planning to launch its very own cryptocurrency
The official Reserve Bank of China, also known as the Bank of China, has begun to get close
to issuing a cryptocurrency. Moreover, this is the first time that the Chinese officials have
taken a stance to get into the cryptocurrency industry. The recent report originates from a
distinctive senior official of the bank.
Since 2018, the researchers of the bank are working tirelessly for developing different
systems. By the looks of it, PBOC’s deputy director Mr. Mu Changchun said that they are
getting close to release the cryptocurrency. Moreover, to spread the news across the country
and then the world, the deputy directors did hold an event. The event was held in
Heilongjaiang’s Yichun, and it was China Finance 40 Forum who was in charge of the event.
What did Mu Changchun address to the people?
Changchun did also repeat the intention of PBOC regarding the digital currency. According
to Changchun, the digital currency is all set to replace conventional MO as well as the cash.
However, cutting-edge cryptocurrency will never replace the country’s credit and monetary
policy. According to the bank, the digital currency would also support the circulation of yuan
alongside the internationalization.
The announcement provides an insight as to what the PBOC has been doing for the last five
years. The national bank of China is progressing to a phase where it would soon introduce
cryptocurrency. In the meantime, China doesn’t want to be left out when it comes to the
cryptocurrency industry. Facebook is on the verge of release a new cryptocurrency. However,
the launch of Libra did garner a massive amount of criticism from significant global central
banks across the world.
When Facebook did give a glimpse of its cryptocurrency, PBOC also said that a central bank
should have control over it. It seems PBOC did claim to put Libra under a central bank as it is
going to curate a new cryptocurrency. The reason why central banks want to acquire control
over the significant cryptocurrencies is to prevent the unprecedented risk in foreign exchange
and also to protect the authority considering the monetary policy.
People still need time to accept cryptocurrency
The foreign exchange state administration of China, Sun Tianqi said that it is essential to see
Libra as a foreign cryptocurrency. Moreover, it is equally necessary to put Libra under the
forex management of Chinese framework. Furthermore, the statement from Sun Tianqi came
into being during the forum China Finance 40.
Additionally, the digital currency by PBOC will not use conventional blockchain to provide
cryptocurrency. Instead, the PBOC intends to provide Beijing much more control concerning
the financial system. The Chinese Central Bank did also register several patents alongside the
businesses and consumers.
The people who want to use the cryptocurrency should download a distinctive mobile wallet
which is yet to release. With the help of the mobile wallet, users can swap yuan for the
cryptocurrency. The users can also make payments using the wallet. The Public BOC also has
the efficiency to track whenever the money does go through an exchange.