Categories: Bitcoin Business

China’s Digital Currency Coming Soon, Says Central Bank

Click here to view original web page at www.ibtimes.com

This is a modal window.

No compatible source was found for this media.

At a time, the currency war between the U.S and China is raging in the name of deliberate weakening of yuan, here comes news that the central bank of China is all set to issue its sovereign digital currency.

Disclosing this, Mu Changchun, deputy director of the People’s Bank of China’s payments department, said the PBOC’s cryptocurrency is “almost ready” for release.

Earlier China was maintaining the stand that cryptocurrency creates disorder as speculators sell off the regular currency and would buy up virtual currency.

In the new system, China might be hoping to create stability with the off-blockchain model.

According to reports, the central bank’s researchers have been working on the currency for five years.

The news comes amidst central bankers worldwide taking a skeptical view of Facebook’s plan to create a cryptocurrency named Libra in association with a consortium of companies including Visa and Uber.

No fixation on Blockchain

The cryptocurrency news from China’s central bank said its digital token will have a two-tier system in which the PBOC and commercial banks will be the authorized issuers at tier 1 and tier two.

The significant part is that PBOC is not fussy about making blockchain the exclusive platform. Rather, it will be technology-neutral.

Blockchain is the main decentralized ledger technology platform guiding most cryptocurrencies including bitcoin.

China's digital currency plan gained traction after Facebook announced details of its Libra cryptocurrency in June.

Wang Xin, head of the research bureau at the PBOC, said in June that the central bank is paying “high attention,” to Libra and would ramp up the development of its digital currency.

China wants more control

However, shunning the decentralized blockchain-based offerings reveals Beijing’s intent to exercise more control over its financial system.

According to reports, the PBOC has already filed 52 patents relating to its digital currency in the name of the Digital Currency Research Lab of the PBoC.

The patents registered by the central bank suggest consumers and businesses have to download a mobile wallet and swap their yuan for the digital money, that could be used to make and receive payments.

The PBOC will track every time money changes hands.

Changchun also said the “blockchain platform just couldn't deliver the throughput needed for retail.”

This photo illustration taken on January 6, 2017 shows Chinese 100 yuan notes and one US dollar notes in Beijing.

He said the PBOC’s digital currency will serve as a substitute for M0 –coins and notes in circulation, but not M2, including bank deposits.

Mu said the digital currency would boost the circulation of the yuan internationally.

Bitcoin dip is an opportunity to buy

Meanwhile, at the bitcoin news front, Goldman Sachs has advised investors to capitalize on the current price dip of bitcoin. According to an analyst’s note, the short-term target for bitcoin (BTC) can be $13,971 and investors can buy it in the current scenario.

The analysis said BTC may find support around $11,094, with scope for a higher movement to $12,916, then $13,971.

No compatible source was found for this media.

At a time, the currency war between the U.S and China is raging in the name of deliberate […]

cinerama

Illuminati, Mason, Anonymous I'll never tell. I can tell you this, global power is shifting and those who have the new intelligence are working to acquire this new force. You matter naught except to yourself, therefore prepare for the least expected and make your place in the new world order.

Disqus Comments Loading...
Share
Published by
cinerama

Recent Posts

Luongo: Trump’s Not A 4-D Chess-Player, He’s A Very Simple Creature

Authored by Tom Luongo, Friday night used to be the ‘best night on television.’ But today Friday afternoon is becoming… Read More

5 hours ago

Overstock Still Focusing on Crypto Despite Embattled CEO’s Departure

Overstock was one of the first major companies that expressed extreme interest in utilizing and adopting crypto – an interest… Read More

5 hours ago

Symmetrical Triangle Pattern May Bolster Bitcoin Bulls

Over the past couple of days Bitcoin has found itself caught within a relatively tight trading range and has continued… Read More

5 hours ago

Overstock’s Patrick Byrne: the rise and fall of a blockchain pioneer

Patrick Byrne this week resigned as CEO of US online retailer Overstock. The move closely followed the announcement of disappointing… Read More

5 hours ago

Ethereum & Stellar’s Lumen Tech Analysis –26/08/19

It’s a bullish start to the day for the majors. Holding above key levels would support another breakout later in… Read More

5 hours ago

New tool for OTC trade is based on Ethereum smart contracts

Source: Wikimedia The decentralized platform AirSwap, a trade network driven by the Ethereum platform, launched a tool, called AirSwap Trader,… Read More

5 hours ago

This website uses cookies. We use these cookies to collect data about your interaction with our website for the purpose of continuously improving your experience with our site. For more information we encourage you to read our privacy policy.

Read More