Are You Ready for China Coin? Chinese Central Bank Wants Its Own Cryptocurrency

The Chinese central bank thinks that such a solution could boost transparency of economic activities and curb money laundering and
Photo: Bloomberg

It seems that it’s not just the world’s largest commercial banks that are buying into blockchain technology, but now also the world’s largest central banks want a piece of the action too. The People’s Bank of China has published a statement today about its research team set up in 2014 to examine bitcoin and cryptocurrencies, saying that the team “should set up a clearer strategic target for launching digital currencies, overcome the key technological barriers … and aim for an early launch of the central bank’s digital currencies.”

The Chinese central bank team added that the central bank should issue a digital currency that will have both a “positive practical significance and a far-reaching historical significance.” It could reduce the high cost of note circulation, improve convenience and transparency of economic transactions, reduce money laundering, tax evasion and other criminal acts, enhance the central bank’s money supply and currency circulation control, better support economic and social development, as well as help build China’s new financial infrastructure.

However, in the bitcoin community the move might not be well received by everyone.

Simon Dixon, CEO BnkToTheFuture and Fund Manager Bitcoin Capital
Simon Dixon, CEO BnkToTheFuture and Fund Manager Bitcoin Capital

Simon Dixon, CEO of BnkToTheFuture and Fund Manager at Bitcoin Capital, commented to Finance Magnates about the breaking news: “It is very interesting that the People’s Bank of China are going to be launching their own digital currencies, but I don’t get it. A digital currency is neutral and can be used by anybody for anything. What can the Peoples Bank go China do that Bitcoin cannot do other than censor transactions and make it closed for participation. I look forward to seeing what they do, but I will still be using Bitcoin. More likely they are using it for inter-bank settlement. Should be great for getting more people into Bitcoin when they realize how a digital currency is meant to work. ”

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“Crypto Currency does not need governments to make them work better. Bitcoin works very well because it is not issued by a government and is regulated by maths and code which is less corruptible than a office full of people developing regulations and policies who are all capable of corrupting the currency to support a certain agenda. Government think in terms of borders. Digital currencies are global. How do you regulate beyond your jurisdiction?”

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