China Reportedly Developing State-Backed Cryptocurrency

Asia Blockchain Review
October 3, 2019
China Reportedly Developing State-Backed Cryptocurrency

In spite of a blanket ban on cryptocurrency trading, China is apparently working to utilize digital assets and blockchain technology.

In a report compiled by Jing Daily, China’s central bank is set to launch a state-backed cryptocurrency designed to provide better stability to certain institutions.

Chinese State Cryptocurrency to Offer Stability

China’s interest in cryptocurrencies, apart from an acknowledgement of the technology’s potential, is purportedly driven by market demands. With fiat currencies subject to an increasingly volatile world economy, China is likely to want to provide its businesses and investors with a robust means to trade.

Analysts also noted that the People’s Bank of China (PBOC) has been accelerating the introduction of its cryptocurrency in response to Facebook likely issuing its digital asset “Libra” next year.  The country has been averse to cryptocurrencies being used by the public, but regulations have not stopped cryptocurrency mining from becoming a cottage industry throughout the world’s second largest economy. 

A popular digital currency such as Libra could therefore provide further avenues for miners. 

China’s Luxury Goods Labels Among Those Most Likely to Benefit

Among the sectors which could potentially benefit from a Chinese cryptocurrency regulated and stabilized by the state are the nation’s luxury goods industry. The sector has already signaled its approval for the PBOC’s desire to tightly control a new digital currency.  

Such a stance is in line with a segment that has already been at the forefront of blockchain promotion, with brands like fashion maker Babyghost having already released blockchain-backed products such as a clothing collection tied to a smartphone app.

Source: jingdaily.com


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