Bitcoin Forum

China tokenizing their currency. There are other countries that will follow. What’s going to happen is that there’s not going to be a competition between digital and non-digital currencies. Every currency will be digital says Pompliano, a partner at digital assets investment firm Morgan Creek Digital and a former product manager at Facebook, what do you guys think? this thus makes sense to me

Full news is right here
https://dailyhodl.com/2019/09/27/crypto-heavyweight-urges-us-government-to-tokenize-the-us-dollar-immediately/

There are lots of things to be considered when upgrading from paper money to cryptocurrency, it may sounds great but the cost of it will be huge.  They need to pass new laws regarding this matter, it also cost huge everytime there is an implementation of new currency, they have to allocate budget for campaigns and awareness, and even tutorial to those who are not knowledgeable on cryptocurrency.  They need to establish every  network connections of that cryptocurrency in every corner of the country and worst, all the peoples monetary movement can be tracked by the government since blockchain is an open ledger to those who have access to it.  In short it will come with a great price which is sacrificing financial privacy.

How will this help other coins and tokens grow? won't this make people turn away from other coins because i think if every countries have their own digital currencies people will use them more than other coins and they will be well regulated too

Do you know why they want to create such cryptocurrency, which is not really cryptocurrency?
To track chinese people. China is well known for their spy activities.  ;)

China as a country is known to have a different approach to the usual systems. For instance, the social credit thing is something unique and done rightly on the highest levels. Wouldn't be surprised if the Chinese government bridges the social credit thingy with the tokenized currencies in this case and possibly rewards/penalties would be direct deductions from the same platform. All in all, China is pushing to get its own currency buzzing in this ever-growing cryptocurrency world.

I believe this will make China to lift the ban placed on it,'s citizen. Although, what they just did is to ensure their citizens are entirely protected from the shortcomings of crypto itself. Although, such decision will also impact their economy.

US will stay with its fiat dollar and what is the reason? the reason is china is not yet tokenizing their yuan and as far as i know china has no intention for tokenization but china's regulator says if there will be a digital form of the yuan. if you are using paypal and you will be very familiar with USD to be used as a digital payment.
I have not seen any confirmation if china will try to do tokenization shortly.
Morgan was saying like that too makes US law maker change its opinion and this will help calibra to get close to be approved.

They can tokenize their currency if they want to. Most of the trend that China sees an advantage to it, they're also stepping in so that they won't be that late to the party.

This is why cryptocurrencies are meant to free (not free in price or giveaway) because everyone can use it.

Good food for the thought, same as Libra?

great news for crypto world if china actively engage with digital token many Chinese inverters will invest on btc and other alt coins. it will give a big attention on world for crypto

Yes a good one.
For the government.
Now, they have the ability to see deeper into how much amount of money does your account have.
Also, they will see how much you are spending and if you are one of the richest who doesn't pay to taxes.
Say goodbye to freedom for all the Chinese.

Although, it will be a good one if it is for their own country.
And no, not all countries will follow this specially the democratic ones.

Chinese is very good when it comes to investment so I presume their coins on their own will progress in the future. I know how persistent they are when it comes to business in spite of viral suspension and ban of China before on crypto but I guess they already realize what is the potential of blockchain in the real world application and a good tool in many aspect of business.

With tokenizing their own currency, China will be spread the use case of RMB and make it available worldwide.
Other country also already start to tokenize their own currency like Indonesia IDR.

Correct me if I am wrong but wasn't the Chinese government against crypto a few years back? Does this mean they will lift the crypto ban that they imposed during that time?

Bitcoin (BTC) is now recognized as a legal asset to be owned, transferred and utilized as a medium of payment for goods and services in China as decreed by the Shenzhen Court of International Arbitration after ordering the Bitcoin ban in 2017.

Countries going for digital currency isn't a big thing for the decentralized crypto environment.
These digital currencies will be centralized just like the fiat we have right now. By going in digital currency, governments are trying to reap benefits of blockchain which are secure transacting environment and high speed fund transfer. This definitely adds an advantage over the traditional fiat currency. If the country is ready to go digital, there must be enough users to it.

But I don't see much benefit coming to crypto marketplace which is decentralized. Such centralized and regulated digital currency put Bitcoins and altcoins in wrong light.

China is a country that sees the latest technological development occuring in the world as an opportunity, and every opportunity they take is aimed at making their economy stronger and dominating the world economy.

Maybe China will become a country that succeess in implementing this, but there hasn't been a exact time when it will start launching.

I think Chinese government is only concern about their country and netizens so they built their own crypto. And I don't surprise if many countries will follow what they did because it more easy and efficient to users and to government to have an innovation and to transact because the government is already the one who regulatse and legalized the coin.

Its a nice idea as this will help China keep track of all their currency around the globe, it will also have great effect on the world of crypto as other countries will also trust digital currency idea and implement the legal use of it.

Do you have any link to back up your statement? because as far as I understand, they are still blocking or banning cryptocurrency exchange whether it is domestic or not. And the reason why they are tokenizing their own currency is because they want to fight cryptocurrency. PBOC has stated it that way a couple of months ago, and after it, they have studied cryptocurrency and aiming to tokenize their currency.


resources:
https://www.investopedia.com/news/bitcoin-banned-china/
https://www.loc.gov/law/help/cryptocurrency/china.php


Let's see whether it is a good thing or not, but from my point of view. Tokenizing their own currency will bring more bad than good.

That could actually work, if they willingly make a move towards digital money, the people around the world will see that it is no big deal. After that, crossing from centralized digital currency to decentralized is not that big of a leap. Even if not, digital money could still help the unbanked and underbanked individuals around the world, this could be a very positive thing, especially if the rest of the world follows. Of course, it would make it easier to track your activities, but we can only ever deal with one problem at a time.

Yes you are right before in 2017 China banned bitcoin but in November 2018 China lifted the ban and bitcoin became legal and has been recognized as a legal asset that can be owned, transferred and used as a means of payment in China from then until now.

Great find, that is definitely good news for the crypto world because it shows real world crypto adoption is increasing. When real world crypto adoption increases, then for sure the value of crypto, in general, not just bitcoin but all altcoins as well, are positively affected.

So yeah, that makes complete sense to me too. Go China finance!

Does this make cryptocurrency legal in China?
if other countries can get to tokenized their currencies just like China cryptocurrency will be widely known and readily accepted by merchants. Kindly answer this what happens to their fiat currency or will both fiat and token be used in the country?

My apologies but this idea of the Chinese government tokenizing their currency has more ulterior reasons than what could be read through the news and watched through the television.

While it is true that the future of currency is digital currency, the tokenization of the Chinese Yuan is definitely a move to counter the rising popularity of digital currencies such as Bitcoin, Ethereum, Ripple, and other cryptos in their own land. The Chinese government, instead of adopting these already existing cryptocurrencies, made one for their own so that they will have a complete control over it. China would never allow a foreign or any cryptocurrency to dominate their domestic day to day economic activity over which they do not have any kind of power or authority.

It's okay, they will need to draft regulatory frame too for people to be properly guided on its usage and ways of doing business. China certainly doesn't want to watch cryptocurrency for others to dominate. Let me see how old rival the USA responds to this.

This one interests me the most.


I guess a country launching its own token and benefitting massively from it will encourage other nations to do thesame. I wonder what Blockchain they will use for this though... a public Blockchain or private Blockchain? Public Blockchain is more appropriate for government in my opinion.