The deputy head of the Central Bank of China officially confirmed plans to launch a national cryptocurrency , and also revealed a number of interesting details about the future coin.
The digital currency of the central bank (CBDC) will be guaranteed by the central bank and will thus be as secure as paper notes issued by PBoC. Tokens can be used without an Internet connection to provide the possibility of continuing transactions even in the event of a communication network failure.
China copies Libra?
We began to suspect the similarity of the Chinese cryptocurrency with Libra some time ago, even though none of these coins has even come out. Now this theory has received official confirmation: the deputy director of the payment unit of the People’s Bank of China issued a statement in which the similarity of the two currencies became apparent.
Mu Changchun confirmed that the Chinese cryptocurrency will be supported by the country's largest technology and financial companies, such as Tencent, Alibaba, etc. It will be possible to use cryptocurrency through the payment services of these giants.
Coins will be provided by the Central Bank, which gives them the same reliability as paper banknotes. Moreover, cryptocurrency can be used even without the Internet. This may become one of the key advantages of the future currency, because the Internet connection is not everywhere and not always. Mu noted that such an opportunity is necessary in case of disasters in the country that could bring down the Internet.
Cryptocurrency Insurance China
The official also revealed the reasons why China puts such emphasis on the development of cryptocurrency . He acknowledged that digital fiat payments are currently of high speed and ease of use, fiat is not able to ensure the financial sovereignty of the country.
In the case of external influences (for example, from the United States), China's financial system can be severely limited, if not completely paralyzed. To be safe, the country needs to have a reliable Fiat counterpart.
In the end, he noted that cryptocurrency will support anonymous transactions, but protection against money laundering will also take place. How these two parameters can get along together is not clear. Most likely, anonymity will only be on paper.
Thus, China is preparing a really interesting product that can change the role of cryptocurrencies in our lives.
Publication date 09/07/2019
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