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The Chinese central bank has revealed that it will soon launch its state-supported cryptocurrency after five years of research.
A senior official of the People's Bank of China said the cryptocurrency is "near the exit" at an event organized by the China Finance 40 Forum, according to separate reports from Reuters and Bloomberg, although it failed to provide a specific date for its inauguration.
Mu Changchun, deputy director of China's central bank, said the new currency would be based on a "two-tier" system that would allow both the PBC and financial institutions to issue the currency.
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China has traditionally been resistant to decentralized cryptocurrencies such as bitcoin, although the country is home to some of the largest cryptocurrency mining structures in the world.
But while China is rejecting the adoption of bitcoins, PBC has been studying the potential of its cryptocurrency since 2014.
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On 3 January 2009 the blockade of the genesis of bitcoin appeared. It arrived less than a year after the pseudonym creator Satoshi Nakamoto detailed the cryptocurrency in a document entitled "Bitcoin: a peer-to-peer electronic cash system"
Reuters
2/8 Bitcoin is used as a currency for the first time
On 22 May 2010 the first bitcoin transaction took place in the real world. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $ 90 million at today's prices
Lazlo Hanyecz
3/8 Silk Road opens to the business world
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road market, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoins
4/8 The first bitcoin ATM is displayed
On October 29, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to trade bitcoins for money
REUTERS / Dimitris Michalakis
5/8 The fall of MtGox
The largest bitcoin exchange in the world, MtGox, declared bankruptcy in February 2014 after losing nearly 750,000 of its bitcoin customers. At the time, this was around 7% of all bitcoins and the market inevitably crashed
Getty Images
6/8 The real Satoshi Nakamoto could stand up please
In 2015, Australian police raided Craig Wright's home after the businessman claimed to be Satoshi Nakamoto. He later canceled the complaint
Getty Images
7/8 The great division of Bitcoin
On 1 August 2017, an unsolvable dispute within the bitcoin community saw the division of the network. The Bitcoin blockchain technology fork has generated a new cryptocurrency: Bitcoin Cash
REUTERS
8/8 The sky rockets of Bitcoin prices
Towards the end of 2017, bitcoin prices rose to almost $ 20,000. This represented an increase of 1,300 percent compared to its price at the beginning of the year
Reuters
1/8 Satoshi Nakamoto creates the first bitcoin block in 2009
On 3 January 2009 the blockade of the genesis of bitcoin appeared. It arrived less than a year after the pseudonym creator Satoshi Nakamoto detailed the cryptocurrency in a document entitled "Bitcoin: a peer-to-peer electronic cash system"
Reuters
2/8 Bitcoin is used as a currency for the first time
On 22 May 2010 the first bitcoin transaction took place in the real world. Lazlo Hanyecz bought two pizzas for 10,000 bitcoins – the equivalent of $ 90 million at today's prices
Lazlo Hanyecz
3/8 Silk Road opens to the business world
Bitcoin soon gained notoriety for its use on the dark web. The Silk Road market, established in 2011, was the first of hundreds of sites to offer illegal drugs and services in exchange for bitcoins
4/8 The first bitcoin ATM is displayed
On October 29, 2013, the first ever bitcoin ATM was installed in a coffee shop in Vancouver, Canada. The machine allowed people to trade bitcoins for money
REUTERS / Dimitris Michalakis
5/8 The fall of MtGox
The largest bitcoin exchange in the world, MtGox, declared bankruptcy in February 2014 after losing nearly 750,000 of its bitcoin customers. At the time, this was around 7% of all bitcoins and the market inevitably crashed
Getty Images
6/8 The real Satoshi Nakamoto could stand up please
In 2015, Australian police raided Craig Wright's home after the businessman claimed to be Satoshi Nakamoto. He later canceled the complaint
Getty Images
7/8 The great division of Bitcoin
On 1 August 2017, an unsolvable dispute within the bitcoin community saw the division of the network. The Bitcoin blockchain technology fork has generated a new cryptocurrency: Bitcoin Cash
REUTERS
8/8 The sky rockets of Bitcoin prices
Towards the end of 2017, bitcoin prices rose to almost $ 20,000. This represented an increase of 1,300 percent compared to its price at the beginning of the year
Reuters
Industry experts claim that other global economies are likely to be left behind if they do not develop their digital blockchain-based currency and continue to stifle the adoption of cryptocurrency.
"It is clear that China understands the opportunity cost of losing the growth of cryptocurrency," said Don Guo, CEO of Broctagon Fintech Group L & # 39; Independent.
"Digital currencies are entering the mainstream and international competition is heating up … China is well positioned to move forward in the game and take a leadership position in one of the main asset classes of the future. Although a certain level of regulation control is wise, other countries should consider China's leadership ".
Reportedly, China is planning to launch its state-supported cryptocurrency (Getty Images)
Few details have been revealed about the Chinese cryptocurrency, although the new system could theoretically reduce the circulation costs of traditional paper currency, as well as accelerate and add security to digital transactions.
If the new currency is to be launched on a significant scale, it will have to be able to cope with huge volumes of transactions.
The new currency could also risk leaving large segments of the Chinese population of 1.4 billion, with only about half of the country possessing smartphones, which presumably will support the digital wallets needed to store and spend the cryptocurrency.
Patents registered by PBC reveal plans for a mobile wallet that would allow users to exchange yuan with cryptocurrency.
The systems described in the patents suggest that cryptocurrency could give the Chinese central bank much greater control over the money supply, as well as tracking all payments made through the network.
