China Ready to Debut National Digital Currency

By Ryan Gandolfo, August 12, 2019

0 1

At the China Finance 40 Forum on August 10, People’s Bank of China Deputy Director Mu Changchun claimed that China’s digital currency is good to go.

After five years of research, a prototype has been successfully developed, meaning its digital currency “can now said to be ready.” Given China’s vast amount of land and massive population, Mu pointed out that the digital currency adopts a two-tier operating system to cater to the PRC’s complex economy. With the PBoC at the upper level and the commercial banks at the second level, Mu argues that this setup will improve accessibility, increase adoption rates for consumers and help promote innovation among businesses. 

Originally, the PBoC was planning to adopt blockchain architecture to create the digital currency; however, they realized there’d be issues applying the currency to small-scale retail.

While China hasn’t given a clear indication of when the currency would begin circulation, Cointelegraph notes that earlier this year the country’s central bank announced intentions of accelerating the development of a national digital currency. Facebook’s Libra coin has notably gained some support in the US government, and China has expressed concerns over the potential changes the social media giant’s cryptocurrency could have on the traditional financial system.  

Countries such as Estonia, Russia, Saudi Arabia, Iran and Venezuela have previously undertaken projects to create a national cryptocurrency. China first announced their intention to create a national cryptocurrency in 2016, although a special group was created two years prior for cryptocurrencies research, according to Cointelegraph.

However, the latest announcement made by the PBoC indicates that China has not created a cryptocurrency, but rather a digital currency. The difference between the two terms is that cryptocurrency is seen as a decentralized form of digital currency that does not require user identification and is transparent – meaning everyone can see everyone’s transactions in anonymity. Digital currency has a central authority that deals with issues and is not considered transparent.

[Cover image via Pixabay]

more news

This Day in History: China-India Nathu La Pass Reopens for Trade

The historic Nathu La Pass in the Himalayan mountains reopened for trade after 44 years.

Shenzhen Becomes China’s First City to Allow Death with Dignity

Shenzhen has become the first Chinese city to allow patients to refuse end-of-life treatment.

Into the Wild: For China’s Camping Purists, Glamping Is Out of the Question

China's camping scene has a large glamping influence, which has had a surprising effect on the market.

Taking the Train? China Has Some New Rules to Follow

The changes are in effect as of July 1.

No More Dreaded Star On China’s Travel Code App

The star will no longer appear on users' apps, as of today, June 29.

This Day in History: China Signs the UN Charter

Chinese leader Chiang Kai-shek signed the UN charter, which was signed by representatives from 50 nations.

Did Wind Blow COVID from North Korea to China?

A government announcement via a WeChat Official Account suggested southerly winds could blow the virus into China.

1 User Comments

    In Case You Missed It…

    We're on WeChat!

    Scan our QR Code at right or follow us at thatsonline for events, guides, giveaways and much more!

    7 Days in China With thatsmags.com

    Weekly updates to your email inbox every Wednesday

    Subscribe

    Download previous issues

    Never miss an issue of That's Magazines!

    Visit the archives