In response to Facebook’s Balance, there is news of China.The cryptography project of the Chinese central bank is gradually taking shape.Beijing sees Libra as a threat.
• China is working hard on the cryptocurrency of the state • PBoC is considering a two-phase system • Beijing sees Libra as a threat New state cryptocurrency
Chinese central bank PBoC announces the early introduction of electronic payment with original currency cryptocurrency, DCEP.The People’s Bank of China prepares a comprehensive project scan the Chinese currency.At an industry conference in Hong Kong, Mu Changchun, head of the central bank’s Blockchain Research Center, has released new information regarding the DCEP project.The Chinese currency Yuan must be replaced in the long term by the new cryptocurrency.This would make China the first country to introduce a digital currency owned by the state.
The global technology giant Huawei provides PBoC with its support in the development of new money.
display
Buying Bitcoin is quite complicated and takes time.” Here you can easily buy and sell Bitcoins Chinese central bank plans a two-phase system for the DCEP
For the introduction of currency, based on the Blockchain, the bank provides a two-phase system.First, cryptocurrency is given to commercial banks, which transmit digital coins to citizens in the second stage.For the start-up period, it is expected to charge no interest on stocks and deposits.
This does not require that the DCEP monetary policy and inflation are adjusted.The new system is also expected to enter the Chinese Hong Kong SAR, and BTC Echo has signed a letter of intent.However, we do not know when the digital piece should arrive.Huang Qifan, vice president of the China International Economic Exchange Center, delivered a speech at the Bund Financial Summit in Shanghai.According to him, the PBoC has been working on the development of the project for 5 years.DCEP in response to Facebook’s Balance
Among other things, the DCEP project is a response to the Libra cryptocurrency introduced by Facebook in June, which is described on the home page of the organization as a decentralized currency, which should be used as a means “for billions of people around the world”.
Libra is also based on blockchain technology.The Chinese Central Bank (PBoC) warned BTC-Echo in June before a possible US buyout of the global cryptographic sector.The reason is the Libra, titled Beijing, according to BTC Echo Libra as “a threat to the monetary sovereignty of China”.According to Tagesschau, Huang also confirms that decentralized monetary systems will have nothing to do with the cryptocurrency held by the state.
“Some companies are trying to challenge the official currencies of the government by publishing Bitcoin or Libra, but it will not work,” says a quote to the news.
Since bitcoin trading is still banned in China, a set of detailed rules must be created for cryptographic currencies.What does this mean for banks?
The entry into force of Digital Currency Electronic Payment could hit banks hard.Mu Changchung said: “During the search and publication period, there will be some kind of horse race, the dominant runner will take over the market – the one that is most efficient, the one that offers the best services – Surviving the future.”Given the current speculation that the DCEP would be a central currency, it would be subject to the authority of the Chinese government.
Chinese banks could therefore have a better overall view of their cash flow than today.However, more detailed technical data have not yet been made public.
Editors finanzen.ch.
