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"Crucial" to issue central bank cryptocurrency as soon as possible, says PBoC researcher

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The principal investigator of the Central Bank of China asserted that a Central bank cryptocurrency should be developed and issued as soon as possible in the country.

According to statements by the South China Morning Post, the principal investigator of the People's Bank of China (PBoC), Yao Qian, has expressed the immediate need to develop and issue its own cryptocurrency to support the economy. Chinese digital economy. Qian has announced the call for digital legal offers as "the crown jewel of fintech" that will have a major impact on the global financial system.

A legal tender cryptocurrency would bring financial inclusion to services offered in rural areas, reduce transaction costs and increase the effectiveness of monetary policies put in place by the central bank, according to Qian.

The PBoC researcher stated:

The development of the digital economy [the] requires more than ever the electronic money issued by the central bank. It is crucial to speed up their research and publications.

Qian's comments further highlight China's efforts to take the initiative to launch a central bank cryptocurrency. The PBoC's efforts to understand the digital currency of a central bank began in 2014 with the establishment of a "special" research team. The initiative was made public in early 2016, when the central bank revealed its intention "to introduce a digital currency as soon as possible".

The PBoC successfully completed a test of its digital currency on a blockchain earlier this year, followed by the creation of a "digital currency" laboratory alongside the offices of China Banknote Printing and Printing. Minting Corporation. owned entity responsible for the printing and minting of the Chinese fiduciary currency, the renminbi.

Qian added:

What the central bank has in mind is a centralized digital currency among all . As money has evolved from the barter system to its metallic forms and paper, it is now digital.

China's sprint to a central bank-controlled cryptocurrency comes amidst its infamous ban on initial coin offerings (OICs) in September. The regulatory ban, which effectively limits a new innovative method of fund-raising fueled by cryptocurrencies, has also led to the closure of cryptocurrency exchanges in the country.

Image from Shutterstock.

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