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.


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
    Vottun’s CEO Gives Us His Take
    We recently caught up with Rohan Hall, Founder/CTO/CEO Vottun USA for his thoughts on things. This i...

    June 4, 2020

    UnionBank’s i2i Platform Continues To Expand
    The i2i of Union Bank of the Philippines’ fintech arm UBX, posted more transactions in the first qua...

    June 3, 2020

    SAP Malaysia’s MD Lays Out His Vision
    It's always a great privilege to talk to C-level executives, Asia Blockchain Review recently caught ...

    June 3, 2020

    Covid-19 is A Wake Up Call: Infinity Blockchain Labs Taiwan Explains
    Get more insights on the bandwagon of adapting towards the future technology of transparency to trac...

    May 29, 2020

    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