China is testing own cryptocurrency

in cryptocurrency •  7 years ago 

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Already in the past, the Chinese central bank has repeatedly been informed that there are plans to issue its own crypto. Even if a concrete implementation appears to be a long way away, transactions in the interbank market have already been tested.

This new digital currency is to be established as a second currency next to the yuan. The benefits are obvious: in a country with a comparatively large number of people, but a weak infrastructure, a digital currency could also allow a value exchange in regions that do not have access to conventional banks.

Moreover, a digital currency would allow the state more control mechanisms. Payments could be better tracked and people monitored. Overall, efficiency increases in terms of costs and time would also be expected.

However, it should not be forgotten here that a state digital currency has not much to do with bitcoin and co. The original motives of Bitcoin to create a state-independent and autonomous money system are counteracted by digital Fiat.

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you know which cryptocurrency is china testing?