How China's Plans to Launch Its Own Currency Might Affect Bitcoin

[mtnsaa]

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/

[justspare]

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.

[franky1]

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

[Araudan]

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

[foggyb]

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

[futureofbitcoin]

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.

[aso118]

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

[7788bitcoin]

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.

[Araudan]

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

[AlexGR]

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.

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.

[koshgel]

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.

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

[BellaBitBit]

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

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. 

[futureofbitcoin]

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.

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.

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.

[bitbaby]

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.

[kevin go]

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..

[robelneo]

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

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

[ausbit]

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

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.

[Kakmakr]

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.   

[HabBear]

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.

[AlexGR]

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

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.