The People’s Bank of China (PBoC), the central bank of China, and is said to be the first major central bank, which is a digital version of the coin is to spend.
The goal is to keep pace with a rapidly-digitalized economy.
They also have more control over that economy, can sustain, as well. It is, of course, be directly contrary to the decentralized concept as bitcoin has begun: the digital cash is without any censorship.
Why China is rushing to mint its own digital currency https://t.co/V88KaesH6Q
— The international monetary fund Computer (@computer) on September 11, 2019
Bitcoin and WeChat
As opposed to bitcoin the market on the digital yuan, no anonymity, and the value will be the same ‘stable’ as a ‘physical’ money.
Question is, what is the effect on the commercial banking sector and the tech, such as Ant Financial, and Tencent Holdings. The companies that offer apps such as WeChat.
China and the PBoC will have to have the need to make changes in technology as much as possible on their own terms, to manage it.
A cashless vending machine in china that uses facial recognition… ” If the Hong Kong riots teach us one thing, it is a. with this, you are trading freedom for a cold drink. pic.twitter.com/UN9wDZbFJx
— Chet Faliszek That Control? (@chetfaliszek) August 26, 2019
China, as a cashless society
China is increasingly becoming a cashless society. Even the street vendors in small towns and cities are giving the preference to the mobile phone to pay instead of cash money.
In the first quarter of 2019 and have dealt with such apps in China, with a total transaction value of 59 billion yuan ($8.300 billion.
Alipay has acted in nearly half of them, followed by WeChat by Tencent that was one-third of the transactions.
As the world gets ready for digital currencies, China looks set to be first past the post. The appointment of central bank’s official Mu, Changchun as head of the PBOC’s digital currency research institute, puts another piece of the puzzle in place. https://t.co/ClLpLbGAHK
— Caixin Global (@caixin) on September 10, 2019
If it’s not bitcoin, it is
There have been important legal and political considerations in order to move to a digital currency issued by the central bank.
First of all, it’s money, electronically, to follow. This can, of course, to be useful in the fight against money-laundering and other illegal activities.
The project was initiated by the former PBOC governor Zhou Xiaochuan, in march, 2018 with a pension.
He indicated that he was in China trying to protect against the possibility that the country will one day, through others, is designed and verified standard, such as, for example, bitcoin is about to take.
“..protect our monetary sov. & legal currency status. we need to plan ahead…,” says PBOC, deputy director. imo, it’s much more than that.
tech (dist.ledger, blockchain, etc.) is secondary. the impact on monetary policy, banking and global fin. the system is to be #1 !!!https://t.co/Gy7JQGDeZf
— pascalb💱uvier ≠ (@pascalbouvier) on September 7, 2019
With bitcoin, there is a decentralised online ledger known as the blockchain), in which transactions are verified and recorded.
Bitcoin supports pseudo-anonymous transfers without the need for any intermediary or central banking. The PBoC is, of course, is a central research institute.
This is the digital, the yuan is far from decentralized. And where the transactions are in the public blockchains are semi-protected, that is, when the transactions of the PBoC is certainly not the case.
The PBoC may well have given that user information is not complete due to being given to the banks.
However, the PBoC itself as an authority with a more complete picture of the user id and activity of each and every Exercise.
A Negative interest rate policy™️ pic.twitter.com/7u01ZqWLEg
— MONETARY PRO™ (@MONETARY_MAYHEM) on September 5, 2019 at the latest
A negative interest rate
An additional motivation for the selection by the PBoC, of a private, digital currency, and can be found in the fact that they are doing this in the future, its economy will make it easier to steer.
In the application, it was a unit of currency described in which the banks that provide loans are required details about the borrowers, and interest rates in the money will be paid to you.
That would be for the PBOC to the bank’s loans and direct financing needs to be more proactive when they feel the need to. It would be for China, and will also make it easier to set negative interest rates to do so, even for people who have a digital currency is set to continue.
(Photo: Flickr / Jonathan Nightingale
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