China’s new crypto currency is intended for the circulation of cash and the surplus reserves of commercial banks at the central bank. This makes China the first country in the world to take the step towards digital money.
China, the second largest economy in the world, says it is about to issue its own crypto currency. More and more people get paid via BTC, read more at http://www.whatreallyhappened.com/blogs/david-balaban/19/07/19/how-earn-or-get-free-bitcoins. An introduction is “imminent”, said Mu Changchun, deputy director for payment transactions at the Chinese central bank, at a conference in Yichun in Heilongjiang province this weekend. Mu was not more concrete in terms of time.
According to Mu, the new digital money will replace the central bank money supply M0. This means the circulation of cash and the surplus reserves of the commercial banks at the central bank. The vice-director said that the introduction of a crypto currency of one’s own should also serve the international dissemination of the Chinese yuan currency.
Is China responding to the announcement of the “Libra”?
China would be the first large economy to introduce its own digital currency. Some central banks, including the Swedish central bank, have been researching similar concepts for some time. But China seems to be much further ahead than other countries in its efforts.
China’s rush may also be a reaction to the announcement of a consortium around the social network Facebook to introduce its own digital currency with “Libra“. Libra should be seen as a foreign currency, said Sun Tianqi of China’s Foreign Exchange Office at the conference.
- China is likely to have a strong interest in tight control over its new digital currency.
- Classical crypto currencies such as Bitcoin, on the other hand, rely on anonymity and decentralized concepts.
- Central banks, however, regularly warn of the risks associated with the use of such crypto currencies, including money laundering and terrorist financing.