The true cryptocurrency of China is being processed

December 18, 2018 Cryptocurrency

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In the middle of a Sino-U.S. Commercial war, the People's Bank of China is working to develop its cryptocurrency prototype. Apparently, he believes that this centralized digital asset can ultimately triumph over BTC and perhaps even the US dollar.

Read also: Bibox buys the 100% share of decentralized Dex.top Exchange

A love-hate relationship with Criptovaluta

<img class = "alignright wp-image-132307″ title=”An alternative of Bitcoin controlled by the Chinese government is reported in the works” src=”https://news.bitcoin.com/wp-content/uploads/2018/03/PBoC-logo-300×300.png” alt=”An alternative to Bitcoin controlled by the Chinese government is shown in the works "width =" 247 "height =" 247 "srcset =" https://news.bitcoin.com/wp-content/uploads/2018/03/PBoC -logo- 300×300.png 300w, https://news.bitcoin.com/wp-content/uploads/2018/03/PBoC-logo-150×150.png 150w, https://news.bitcoin.com/wp-content / uploads / 2018/03 / PBoC-logo.png 418w "sizes =" (maximum width: 247px) 100vw, 247px”/>The government of China has been sadly hostile towards economic activities related to cryptocurrency such as encryption, mining, P2P loans and ICOs. But this does not mean that the Chinese government disapproves of the idea behind Bitcoin. Although Xi Jinping's administration has done much to kill the domestic cryptocurrency market, it is currently working to develop its secure, blockchain-based digital currency.

The reports reveal that the People's Bank of China (PBoC) has registered 78 digital currency patents, of which 44 linked to the blockchain, at least since 2016, classifying the PBoC as the fifth most prolific space license, as reported by the Chinese IPR Daily.

In addition, the PBoC has actively hired developers and economic specialists for its Digital Currency Institute, based in Beijing, whose stated goal is to issue and distribute a currency based on blockchain.

Unprecedented control

<img class = "alignright size-medium wp-image-36267″ title=”An alternative of Bitcoin controlled by the Chinese government is reported in the works” src=”https://news.bitcoin.com/wp-content/uploads/2017/02/Former-Governor-of-the-People’s-Bank-of-China-If-you-want-to-kill-Bitcoin-it-will-be-an-impossible-task-300×200.png” alt=”An alternative of Bitcoin controlled by the Chinese government is reported in the works "width =" 300 "height =" 200 "srcset =" https://news.bitcoin.com/wp-content/uploads/2017/02/Former -Governor-of-the-people-Bank-of-China-If-you-want-kill-Bitcoin-will-be-impossible-task-300×200.png 300w, https://news.bitcoin.com / wp-content / uploads / 2017/02 / the ex-governor-of-the-Popular-Bank-of-China-If-you-want-to-kill-Bitcoin-it-will-be-an-impossible-task – 768×512.png 768w, https://news.bitcoin.com/wp-content/uploads/2017/02/Former-Governor-of-the-People's-Bank-of-China-If-you-want -to- kill-Bitcoin-it-will-be-an-impossible-task-600×400.png 600w, https://news.bitcoin.com/wp-content/uploads/2017/02/Former-Governor-of- the-People & # 39; s -Bank-of-China-If-you-want-to-kill-Bitcoin-it-will-be-an-impossible-task-696×464.png 696w, https: //news.bitcoin .com / wp-content / uploads / 2017/02 / Ex-Governor-of-People-Bank-of-China-If-you-want-kill-Bitcoin-will-be-impossible-task-630 x420.png 630w, https: / /news.bitcoin.com/wp-content/uploads/2017/02/Former-Governor-of-the-People's-Bank-of-China-If-you-want -to-kill-Bitcoin-it-will-be -an-impossible-task.png 1000w "sizes =" (maximum width: 300px) 100vw, 300px”/>The project was originally conceived by the vice governor of PBoC Zhou Xiaochuan, with the intention of "protecting" China from Bitcoin, a resource that could not be controlled. In contrast to the decentralized digital currencies that we know and love, the PBoC alternative could, in effect, allow the Chinese government to exercise even greater control over the lives of the citizens of the country.

The current Deputy Governor of the Bank, Fan Yifei, announced at the beginning of the year that, once implemented, the cryptocurrency controlled by the Chinese would replace the legal tender currency of the country and would eventually help the bank to reduce the risks associated with money laundering and other crimes.

Some of the patents filed by the PBoC reveal what the Chinese government has in mind for the future. According to a Bloomberg review of recent patent filings, the government not only wants to monitor its citizens' daily transactions, but also aims to force banks to share all data about potential borrowers before authorizing any type of transaction.

Furthermore, the PBoC would immediately be able to prohibit any financial institution from dealing with "blacklisted" companies. Although there is no evidence that the bank wants to deny people access to financial services, the recent efforts made by the Chinese government to set up a social credit system could indicate this possibility.

Trump's administration could accelerate the development of the Chinese digital currency

With the United States inexorable in its current trade war against China, bankers and politicians are becoming increasingly interested in accessing an alternative payment method that would reduce US dominance in international financial markets, while rumors of a crypt backed by the China are gaining momentum.

The recent arrest of Huawei's Sabrina Meng Wanzhou CFO in Canada at the behest of the US government has reignited this debate in China. Meng was arrested on charges of international sanctions imposed by Iran on Iran, charges that could involve HSBC and the Standard Chartered Bank.

As reported by the South China Morning Post on December 17, Richard Jerram, chief economist at the Bank of Singapore, said:

President Trump is promoting an "America first" policy, so you can not rely on America to keep your borders open to trade, or to rely on it to support the World Trade Organization or the International Monetary Fund. So you can understand why countries are looking for substitutes … In a world of multilateral multilateral order, countries will try to reduce their dependence on the United States.

Although the Chinese yuan represents only 1% of the international payments market and 1.8% of all reserve assets held by central banks, China contributed 27.2% to growth total global GDP only in 2018. This performance makes it the single largest contributor to the current global economy despite the US trade war and the depreciation of the Chinese yuan.

Its position of economic power and the current climate of political tension with the United States could force the Chinese government to redouble its efforts to end the US hegemony by attacking the US dollar.

Given that the world economy is slowly migrating to digital systems, it would not be too far-fetched to think that an alternative to the US dollar could take the form of a digital asset very similar to the cryptocurrency proposed by the Chinese government.

Will China distribute its cryptocurrency? Do you think that such a digital resource could end up having consequences on the world stage? Let us know in the comments section below.

Images courtesy of Shutterstock.

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The true cryptocurrency of China is being processed

A love-hate relationship with Criptovaluta

Unprecedented control

Trump's administration could accelerate the development of the Chinese digital currency

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