China's Central Bank is Ready to Launch Cryptocurrency
It was announced that China’s central bank is ready to launch a state-backed cryptocurrency and hand it out to several biggest institutions in the country, according to Forbes.
"It's clear that China understands the opportunity cost of missing out on cryptocurrency growth," As we know China has traditionally been resistant to decentralised cryptocurrencies like bitcoin, despite the country being home to some of the world's largest cryptocurrency mining facilities due to its lower cost.
Many experts say economies risk being left behind if they do not develop their own blockchain-based digital currency and continue to stifle cryptocurrency adoption.
But while China pushes back on bitcoin adoption, the PBC has been researching the potential of its own cryptocurrency since 2014.
What is it about?
The plan is hand it out to several biggest institutions — the Commercial Bank of China and tech juggernauts Alibaba and Tencent among them — to help distribute the cryptocurrency into the country’s economy.
Patents registered by the PBC reveal plans for a mobile wallet that would allow users to swap yuan for cryptocurrency.
Mu Changchun, deputy director of the China's central bank, said the new currency would rely on a "two-tier" system that would allow both the PBC and financial institutions to issue the currency.
Systems described in the patents suggest the cryptocurrency could give China's central bank much greater control of the money supply, as well as track all payments made across the network.
According to Forbes‘ sources, the plan is to launch the digital currency as soon as Singles Day on November 11, China’s busiest shopping day.
What do you think about new state-backed cryptocurrency?
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