A bold move by China:  Release of its own Cryptocurrency

People’s Bank of China, China’s Central Bank is very close to release its own Cryptocurrency. Mu Changchun, Deputy Director PBOC said the Institution is working on the currency since last five years. Now Virtual currency is almost ready to release.

PBOC would launch its cryptocurrency through a two-tier system. Under the system, PBOC and other commercial banks would be the legitimate issuers of cryptocurrency. Its release will boost the cryptocurrency and bitcoins prices.

The release of cryptocurrency will make it easier for consumers and businesses to make and receive payment digitally. This will be done by swapping their yuan for digital money. However, PBOC can easily track their money changes hands.

PBOC is not alone in adopting the idea as Sweden’s Riksbank is also looking for the same. Not only the countries, Social media platforms like Facebook, Twitter are also looking to release their own Cryptocurrency and bitcoins. Among them, Facebook is planning to release “Libra “, its own digital currency by the mid of next year.

According to sources, the state-owned bank of china posted an article about the pro-bitcoin infographic on its website. In the article, the bank explained about the history of bitcoins and how cryptocurrencies work.

Technology to be used for China’s Cryptocurrency

Generally, Blockchain or distributed ledger technology is used to underpin cryptocurrency like bitcoins. But china’s cryptocurrency concept would not rely on Blockchain exclusively. Instead of that, neutral technology would decide to use- said Mu Changchun.

On this, Mati Greenspan, senior market analyst at eToro said it’s difficult to understand this concept that is completely different from the known cryptocurrency concepts.

An Intention behind releasing China’s Cryptocurrency

Mu Changchun pointed out the PBOC’s intention behind releasing cryptocurrency. This digital currency would replace M0, or cash in circulation, rather than M2, which generate credit and monetary policy.

It is also intended to give Beijing more control over its financial system. Further, it supports yuan’s circulation and internationalization.

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