China Becomes First Country in the World to Test a National Cryptocurrency
Amazing news
China's central bank has developed its own cryptocurrency, which is now being tested. Cryptocurrencies have the potential to not only benefit China, but the rest of the world, due to their basis in blockchain.
BENEFITS OF DIGITAL CURRENCY
China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that it could end up in circulation in the near future. It would be introduced alongside the China’s primary currency the renminbi (also called the yuan). China will be simulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks.
The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth.
THE RISE OF CRYPTOCURRENCIES
Since Bitcoin’s humble beginnings back in 2009 (when it was only valued at around 0.0007 USD) the digital currency, and the very idea of cryptocurrencies in fact, has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A single Bitcoin is now worth more than $2,500. Now many national economies, as China’s plan shows, are considering the idea of developing their own variant.
Although China’s experimental approach to simulate a self-developed cryptocurrency’s usage is the first of its kind, other countries and institutions have made strides in that direction as well. The Deputy of Russia’s central bank has emphatically stated that “regulators of all countries agree that it’s time to develop national cryptocurrencies.” Over 260,000 stores in Japan will begin accepting Bitcoin as legal tender this summer, and big banks like Santander have announced plans to develop their own version.
Cryptocurrencies have the potential of revolutionizing not only the business world, but many methods of transaction. There has already been talk of using cryptocurrencies to administer Universal Basic Incomes due to their traceability, as well as for the delivery of human aid; the potential for which was demonstrated by a recent experiment to help refugees in Jordan by the UN.
United states is busy regulating, controling and limiting its citizens in the crypto space: Bitcoin when China and Russia are supporting the technology...late you call China a communist....thanks for sharing and stay in touch
We may like it or not but there will be government interference in cryptocurrency world. It will vary from country to country but no one will legalize it without any regulation. And I suppose some level of regulation will be required too otherwise it can cause problem to economy.
Isn't the point of cryptocurrency to eliminate central banking control on money? I'm new to this but that is what I understood from what I read so far.
Yes, decentralization is the key to all crypto currencies. And the currency being developed by China will also be decentralized as it is using blockchain.
There could be many advantages of govt introducing cryptocurrency. As the article reads "The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth."
OMG, see you in another life corruption and banks!
Ha ha ha. That's highly optimistic. It's true that crypto currency has potential to curb corruption but it's not fully evident that it will work 100%. As the adaptation increasing we'll see more use cases and based upon that we'll be able to confirm.
Regarding banks, they are also not going away anytime soon but cryptocurrency surely poses a great threat to that industry. May be in 2 decades picture of financial transactions would be completely different without any central bank.
That's true, hopefully keep the great work, and then I guess it will consist again on services/ transactions facilities and available markets to spend the tokens... But also... Santander it's not aware of Steemit existence yet (here goes the meme of the guy touching his head with one finger)
Ha ha ha... I love that meme guy. Sometimes he offers the best answer and acceptance in the discussion by his subtle looks with his finger on head 😀
Future of financial system is surely going to be completely different as this new revolutions has started already 👍
I've posted my reaction below to the exact same post, this is the second time I'm seeing this article about China and their plans. Here's my reaction I made 8 hours ago:
"I think Chinese people will go all in on NEO (former Antshares). It's being marketed as the new Ethereum.
Speaking of Ethereum... in my opinion Ethereum isn't going to last: https://steemit.com/cryptocurrency/@valderrama/stratis-will-beat-ethereum-in-2018
But China is somewhat of another dimension, they play by their own rules. So for China, NEO it is."
Thanks for sharing about NEO, I will have to do more research on it. And as per my current finding about Ethereum I don't agree about ETH not going to last. Currently Ethereum has potential to even over take Bitcoin. And it does have good technology backing making its future brighter.
@cryptocurrencyb thanks for post intresting read here:-
https://steemit.com/cryptocurrency/@pps/first-national-crytocurency-testing-by-china