The Future of Digital Currency in China

May 7, 2019

China is on the brink of introducing a Central Bank Digital Currency (CBDC), which is expected to provide the People’s Bank of China (PBoC) with more financial data as well as bring major changes to monetary policy tools, according to a report by the China Economic Review.

The currency will face very little competition in the country, as China has banned private digital currencies.

With cryptocurrencies being decentralized, immutable and transparent, many nation states have been wary of allowing crypto activities to flourish, due to the difficulties in regulating cryptocurrencies. China has therefore come up with its own version of cryptocurrency the CBDC developed with the intention of being used in a much more centralized setting.

Apart from China, the emergence of the crypto ecosystem has drawn interest from other countries in this type of digital currency. Over 90 other central banks, including Sweden’s Riksbank, are researching CBDC technology.

Though many in the financial industry admit that the growth of digital currencies is unstoppable, China is determined to preserve the legal status of the renminbi, while curbing activities related to digital currencies. The country first issued regulations to limit the use of Bitcoin in 2013, and in 2018, investments relating to crypto were outright banned with crypto mining strictly discouraged in China.

As banks and government agencies in China have been conducting research on distributed ledger technology (DLT) and digital currency since 2017, the time is ripe for the country to take further steps towards digital payments to change the face of the financial industry.

Source: chinaeconomicreview.com

About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

Related Article
Facebook Decides not to Offer Libra in India
Facebook has decided not to launch its Libra token in India due to regulatory pressure from the Indi...

July 20, 2019

Malaysian Blockchain-based Exchange Leads Digital Transformation
Fusang Exchange has been granted approval by the Securities Exchange to operate in Malaysia’s specia...

July 20, 2019

HSBC Blockchain Link-Up Platform Saves 40% of Transaction Time
A shipment between Hong Kong and Dubai involving two separate blockchain platforms was able to succe...

July 20, 2019

LG Applies Blockchain Platform to School Lunch Programs
An LG subsidiary has announced plans to develop a blockchain-based platform for the distribution of ...

July 19, 2019

We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us