Chinese Central bank digital currency (CBDC) is all set to launch, and the bank has made it official. The step is taken as a measure to stay ahead of the competition in the cryptocurrency sphere.
In November of 2018, The internet was going wild with the fake ban-lift news that had China at its center because it wouldn’t allow the people to trade in crypto. This time its nothing like that and by nothing- we do mean nothing.
Need for a Chinese Central bank digital currency
China is planning of launching a state-backed cryptocurrency. Of course, the crypto will be monitored with little privacy for the traders to work with, but it is- even on the lower end- a big step taken by the People’s Bank of China (POBC).
The meeting was adjourned this morning where the proposal was put forward for a state-backed cryptocurrency. Only forty (40) people that attended the meeting were to know of this, but word got out -reports Shanghai-based media outlet.
This digital currency has been in the making for the past five (5) years, stated the deputy director of POBC payment and settlement division, Mu Changchun.
The project is aimed at supporting smaller businesses with micro-transactions. The cryptocurrency will not be a full-fledged blockchain structure. POBC has the interest of the people of China in mind. Given China’s much larger population compared to any continent in the wold, scalability could prove quite troublesome.
According to the report, it’s going to be an efficient service, not one that’s ‘big enough to facilitate all, yet facilitate them inefficiently’- believes Mu Changchun.
The way things will operate is simple. It’s a two-tier system which converts cryptocurrency to fiat that the banks will then be able to hand out to the respected recipients.
China has received high praise for its step into the crypto market. The POBC is bathing in credit.
Anthony Pompliano, the founder of Morgan Creek Digital, has regarded China as the country that supports innovation while the USA has been reprimanded for not doing the same.
Primitive Ventures co-founder, Dovey Wan, is a bit salty regarding the centralization part but he’s happy that China made the leap.