Bitcoin Forum

China’s central bank, the People’s Bank of China (PBOC) has revealed that it is in discussions to launch its own digital currency. What does this mean for Bitcoin?

From the statement, it is clear the PBOC understands the digital global landscape and how the emergence of new technologies will shape the future. This move seems to be an attempt to become the reserve currency of the new digital world.

https://www.cryptocoinsnews.com/chinas-plans-launch-currency-might-affect-bitcoin/

I think that this may effect Bitcoin a bit, but people who have already invested in Bitcoin will probably still use it.

its not a blockchain currency..

if you actually read it.. its actually the same currency they have already. they are just trying to get rid of the paper side to be purely digital..

so dont confuse it to be a blockchain altcoin or anything relevant to cryptocurrencies. mainly the banks want to expand the debit card usage to the entire population so that they can do away with bank notes

Wait and see... Remember the AuroraCoin for Iceland...

I agree with Franky. If its not blockchain technology then its not threat whatsoever to bitcoin.

Not true.

No one knows what the hell "blockchain technology is". Don't nitpick, I obviously just meant that the vast majority of "normal" people don't know what it is.

They may have heard of a "digital currency" called bitcoin. They don't know how it's different from WoW gold or whatever other virtual currencies there are.

So obviously even if a lot of propaganda about how digital currencies are safe, fast and more convenient, they'll stick to a government issued digital currency, rather than some obscure thing like bitcoin.

The Chinese government will continue to do what it is doing now (have a stranglehold over the currency) even in the digital world.
Look at the reasons they give for coming up with a digital currency.

reduce money laundering, tax evasion and other criminal acts, enhance the central bank’s control of over the money supply and currency circulation

The Chinese government's "Dragoncoin" will most likely be centralized and government-controlled (vs trustless). It will most likely come with additional features that allow capital control and limit/monitored cross border transaction... These are all the opposite of Bitcoin. I am sure it will co-exist with bitcoin.

Yeah I also think theses 2 currencies can co-exist.

Most governments will try to push electronic payments of their currency as a modern alternative to cash. Bitcoin and altcoins are for when you don't want the government to monitor your buying habits, who paid you, what you bought etc etc. So the more electronic currency push there is by governments, the stronger the need for non-government alternatives. Goes without saying that the government push will also try to prevent people from trading with cryptocurrency.

Just like every other alt-coin. Slim possibility of coexisitng but no chance of effecting Bitcoin overall.

Thank you! this is what happens when a person actually reads the entire article.  This news has been floating around a couple days and some are worried about it.  This makes sense now. 

How I see it is like this. People were all government-currency users. Then there comes bitcoin, and then some people start talking about how bitcoin is revolutionary, how it has low fees, can do microtransactions, etc. Then some people are "converted" to bitcoin.

But then the government steps up to create their own govcoin that has those benefits as well, so the people are converted back to the government issued currency.


The actual number of people who care about libertarian ideals is not that high. Not enough to make bitcoin into a huge success, certainly.

A lot of currencies/altcoins have been launched after bitcoin, no one has so far affected bitcoin in any way and same way no matter what currency china decides to launch blockchain or otherwise, it won't affect bitcoin in any way.

do you mean china is going to lauch new coin just like bitcoin?
but im not sure to easy compete with btc..bcause btc alrdy got a investor in there..
china always try to become our competition..

I still remember that some two years ago,but we all know china is a superpower and they have a way to make things happen it will not go the way aurora coin did they have active merchants worldwide and they work globally..
I would have to see what kind of digital currency would that be and how it can affect bitcoin

we see now a days that lots of product is made in china, so the same way chinese people are trying to launch its own currency which might affect bitcoins trading too. but it will be te no 1 in all the categories. we should wait and watch how it goes.

What would be interesting, is if the Chinese government force all Chinese mining farms to mine their own coin and not Bitcoin. It would effectively take away 50% to 60% of the Bitcoin hash power. A lot of these operations can be moved out of the country if that happens, but it will be more expensive to do that, because electricity is subsidized in China.

Now that is a scary thought. Then again difficulty would drop and we would possibly be able to mine with GPU's again.   

They already have a digital currency, it's called the Yuan and it's widely available in a digital form.

I don't think this is going to affect bitcoin any more than ANY government backed currency can. There's safety in the government backing but risk in the manipulation that will inevitably occur.

You don't need to be a libertarian.

Remember that the number of people who like their national currency to be devalued and devalued and devalued is a very small group. Bitcoin offers a deflationary store of value, like gold, but you can also pay with it directly and electronically all across the world.

People in western countries or rich countries do not understand the problem. However billions of people live in countries where simply holding fiat currency for, say, 3 years, will end up in a reduction of your wealth by something like 20-40%. And these countries will also try to make it hard for the citizens to obtain hard currency or gold, in order to reduce pressure to their respective national currencies.

https://cdn-images-1.medium.com/max/2000/1*U65ykCCdzFB-8YYDTL_r9w.jpeg

then nothing to worry about, if it is only an enhancement of their current fiat system, and it does not make sense for them to use blockchain, if they are not hindering the adoption of bitcoin

it would be better to embrace bitcoin itself and regualte it

It means you are good at reading the FUD machine

Well if china's total population for bitcoin will only use their own crypto and not gonna get busy with bitcoin it might affect bitcoin indeed but if they continued to use bitcoin in my opinion they will still do it will keep on rising and besides bitcoin is stable for them to open up a new and newbie crypto right?

The Chinese mining farms have invested too much into mining hardware to fosake the cryptos so early.

The Chinese banks maybe want to have a better control over the currency so they are going to improve the digital transactions makes sense to me.

This might have a negative effect on BTCitcoin if all those mentioned in the article happens which I doubt since they wouldn't be leaving all those for nothing therefore more alternatives would come out if these happen. Alternative chip manufacturer and exchanges would surely replace those so if ever there would be any effect, it would be temporarily one that gets recovered in little time.

What a bullshit. No better reserve than Bitcoin - decentrally issued, open-sourced, with problems-yet-to-be-solved, but still the best. I won't underestimate the power of mainstream media in combination with sheeple, but this just can't be anything else other than Fiat 2.0 scam.

I cannot see why countries would want to develop their own "digital currency" if they can get a free ride on the biggest and most secure network on this

planet.  ::) Bitcoin has a very good track record and these countries does not have to pay for developers to maintain these networks and for hardware

to be bought to process the transactions. The only insecure part of Bitcoin are these 3rd party services. {MtGox & Cryptsy etc. etc.} Those services has

nothing to do with the protocol and how it functions. They are going to spend millions to mimic a system that are already developed and are free to use.

Even if they decide to design their own national crypto, bitcoin would still rule.
The big advantage of bitcoin is decentralization and any other crypto coin designed by a government will never offer that possibility.

Even if it is a blockchain crypto it is unlikly to be a threat to bitcoin because it will be highly controlled and regulated. if anything it would bring new recruits to bitcoin who have not heard of it before.  andreas antonpolus made a cracking speech on regulated and controlled blockchains.  https://www.youtube.com/watch?v=810aKcfM__Q

Any speculation when China might launch its alt coin would it be mined or have a set amount.

Even if it's not using blockchain technology a state owned "official" digital currency going to increase awareness and acceptance for all digital currencies. So I think we can see this as good news.

No threat to bitcoin than. And it is for sure no any bank will use blockchain technology to create digital currency.

All right I get the idea that the whole world is going cashless and China does not want to be left out of the movement. What I do not understand is why   the rich countries want to completely wipe out bank notes? Are the authorities trying to monitor every single transaction made worldwide?

It's just different. Alipay is an extremely convenient way to avoid a lot of hassle due to having cash money in one's pocket while at the same time having all the qualities and drawbacks of fiat. Everyone has been using it in China for years now. Very different from bitcoin but not exactly "not a threat" either.

every day there is a new thing coming out and claiming to (or media claims to) have an effect on bitcoin and be the bitcoin replacement. there are altcoins, bank and financial groups creating blockchains,...

but i think they are all just altcoins that can not grow big enough to be considered a competition. besides if China or any other group creates such a thing it will only be used locally (like only in China) and never be used all over the world like bitcoin does.

Yes, and moving one step closer towards a cashless society.

Would anyone outside of China seriously invest in this currency,their own people would be highly skeptical of it as well.
They could wipe it out with a flip of the switch and it would be a classic pump and dump,with out the dump! More like grab.

There is nothing to worry about. Many Chinese are in bitcoin because they tired of capital controls, devaluation of their money and the government's control on their lives. The new digital currency they proposed fixes none of those problems. In fact it makes it easier to devalue, better at capital controls and better at monitoring their citizens.

Has China done any business venture that was not self serving? They would treat this like monoply money and cheapen cryptocurrency in the process.
Offering product cheap to encourage use, just like how they pay a large chunk of tourists way to encourage travel.