First National Crytocurency testing by China

China now becomes the first country to test it's national cryptocurrency. This step shows that china is serious in exploring the technical, logistical and economic challenges in digital cryptocurrency

This is a great step in china because

1. Cryptocurrency will decrease the cost of transaction thus allowing millions of people for financial service which are not connected to conventional banks
2. Due to support of blockchain it has potential to decrease fraud and counterfeiting and can help government to reduce corruption
3. Digital currency will allow chinese Government to get an oversight of the digital transaction.

In a paper published in Tsinghua Financial Review, an academic journal, Yao Qian, deputy director of the Technology Department of the People’s Bank of China writes digital currency could be integrated with the existing banking system. This paper describes about the relationship beween digital currency and bank account.