China’s Cryptocurrency and Features
Recently, China’s digital money initiative continues to attract enthusiasts of the cryptocurrency sector. Although there are reports that the Chinese Yuan-supported cryptocurrency is ready, there is no certain information. However, it is expected to be released in the near future. In this article, we have explained three facts you need to know about China’s digital money. Have a pleasant reading.
Anyone who has done a little research on China knows that e-payments are not separate from the country’s economic structure. So the biggest question in mind is why a digital money initiative is taken in a country where electronic payments are already common.
The answer is hidden in the statement of Mu Changchun, a member of the People’s Bank of China (PBoC). According to Changchun, with the government-funded cryptocurrency (CBDC), which will soon enter the market, people will be able to integrate cryptocurrencies in their wallets with their IDs. In this way, the authorities will be able to follow the financial transactions of Chinese citizens.
Fear of Libra
China had been on the agenda in recent months because of Libra. Immediately after the allegations that the Libra project would be launched in 2020, China quickly announced that it would launch its own cryptocurrency.
China abstains from Libra, because of the fact that they are extremely worried that it will function as a payment system in the country. They think that the introduction of a cryptocurrency, such as Libra, could harm capital control efforts.
Not a Cryptocurrency
The third and final information is quite interesting. The cryptocurrency that will enter the market will not have exactly the status of a cryptocurrency. The People’s Bank of China will most likely fix each digital yuan to a real one and distribute it to banks. In this respect, it is expected to be a Tether-like crypto. Users who want to buy the cryptocurrency will be able to obtain it from these banks.
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