China central bank to release digital currency prototype in 2017

[hl5460]

China central bank to release digital currency prototype in 2017

Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.



http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

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[Actualiteit]

Fiat digital currency... I thought nearly all fiat currency was digital already, as in it doesn't exist? Central banks should stop trying so hard to release their own shitcoins.

[dihari]

The future is coming very soon. This make some questions for all bitcoiners in the world, especially in China.
do we have to worry about that?
If this a good news, what is the best impacts for bitcoin users?

[royalfestus]

I knew it, if it does not happen now it will happen soon. Everything about economy, financial policies and technology in Asia points to that direction,  and if it can be adopted by a 1 billion country people, the value will be erupting. China has the recent track record of succeeding. This could help the trade of produce through online store to neighboring Asia countries, South America and Africa. If the government promote it. lots of money will be invested which make a big competition with bitcoin. By rumored Asia bitcoin centralization and mass adoption, bitcoin will be able to compete and survive it.

[Xester]

This is one of the signs that I always spoke about. This is one of the signs that bitcoin will possibly be a goner in the years to come. There are two things that may actually happen to bitcoin when this fiat digital currency is launch.

1. There will be huge volume of bitcoin being dumped in the market by Chinese holders and miners. And since they own the biggest shares when they dump bitcoin it will possibly drop to 500$ to 300$ each.

2. If China will not make a dump then bitcoin will remain the same.

[IIOII]

So China's central banks discover the altcoin market. Great news.

Not surprising, what the central bank has to offer is simply digital fiat money under their central control. They are basically replicating PayPal as a national service. Innovation: Zero, just as the government loves it.

[BillyBobZorton]

The future is coming very soon. This make some questions for all bitcoiners in the world, especially in China.
do we have to worry about that?
If this a good news, what is the best impacts for bitcoin users?

It's good news, since teh fiat currencies released by governments will be closed source, heavily centralized, monitored and taxed, so people will search for bitcoin as the free borderless decentralized alternative that doesn't depend on any government. It's really good news actually since it accentuates the case for bitcoin, average joes will understand the difference.

[albama]

China central bank to release digital currency prototype in 2017

Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.



http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

[iqlimasyadiqa]

These are all people expect. we will begin to enter the era of digital currency. bitcoin will have a very high prestige. china started this with a very nice, momentum.

[Digitalbitcoin]

Well its up to any of government. But such altcoins will become centralized not decentralized. And centralization can make it common. So even any of country launch own cryptocurrency it cannot beat bitcoin.

Even it will support bitcoin to become more valuable.

[kumax]

Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China?
If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I'll go for bitcoin.
I don't believe it will have a big success.

[BillyBobZorton]

Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China?
If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I'll go for bitcoin.
I don't believe it will have a big success.

Why did the chinese panic sell in recent hours at the news of the government wanting to do something about bitcoin? (they didn't even mention the word ban as far as I know..) the government has a very powerful network effect. They can trigger panic sell on the weak holders, they will make them run for the comfort of a regulated and stable price currency. But of course, you'll never get rich holding a boring ass centralized, regulated closed source crypto so they will eventually come back to the excitement of bitcoin.

[Bitcoinpro]

complete and utter crud same story regurgitated 50 times

[franky1]

Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China?
If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I'll go for bitcoin.
I don't believe it will have a big success.

the point is that the china central banks altcoin WILL BE THEIR FIAT

to citizens they wont see the difference at first. the banks will just swap their old database to a new database in very laymans terms. citizens wont notice the difference to how their bank balance is stored. as thats behind closed doors. but later they will start offering NFC smartwatches or  smartphone apps instead of debit cards/paper cash.

the benefit i can see is instead of card cloning and merchants storing card information. the hardware wallet(smartphone/watch/wristbands) just sends a signed tx to the merchant, making each transaction unique to that purchase. to avoid card cloning or merchant hacking. due to the fact a banking customer keeps the privkey safe in their own device.

the downside i can see is lose the device, lose access to your income and starve. in a utopian situation that was permissionless.. so to solve that, ofcourse the banks will have access to your key to 're-credit' you or give you a new device. making it still a permissioned/middleman payment system, meaning the system wont change much just the way a customer pays (NFC smartphone/watch instead of magnetic strip debit card or paper cash) will change

[tyz]

I can not see how this should help Bitcoin. At least, it could help to grow attention for crypto coins.

I opened a discussion about "Central Bank Coins Are the New Altcoins" in Altcoin section three weeks ago. It cointains an interesting article about this topic.

China central bank to release digital currency prototype in 2017

Back in August 2016, Fan Yifei, Vice President fo People’s Bank of China, has written an article elaborating the theoretical basis and framework selection of China’s fiat digital currency. He says that the legal framework of China’s legal digital currency tends to follow “central bank – commercial bank” dual model, that is: the central bank is responsible for digital currency issuance and verification monitoring. Commercial banks are responsible for providing digital currency circulation services and building application for the ecosystem. A Demo system is expected to be released after the Spring Festival of 2017 after two rounds of revision.



http://news.8btc.com/china-central-bank-to-release-digital-currency-prototype-in-2017

That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

[franky1]

That is lovely news. It helps bitcoin grow up higher. Like this news. Thank you for your share

funny part is that when people talk about media coverage of bankers using blockchains. first they try to say fiat is bad. but then go and shout happily about how it will make them profits when bitcoins FIAT PRICE rises so they can exit bitcoin and return to fiat.(facepalm)

banks hyperledger sidechain announcements do not effect bitcoin. (the technology) as they are separate things. so if all you care about is fiat prices, your not only missing the purpose of bitcoin. but also the hyper inflation of fiat due to the bankers sidechain swap. meaning your not going to gain anything when $10,000 only buys you a loaf of bread.

the fiat price and bankers fiat games are meaningless, when you start to appreciate what bitcoin is really about

[Kprawn]

This is one of the signs that I always spoke about. This is one of the signs that bitcoin will possibly be a goner in the years to come. There are two things that may actually happen to bitcoin when this fiat digital currency is launch.

1. There will be huge volume of bitcoin being dumped in the market by Chinese holders and miners. And since they own the biggest shares when they dump bitcoin it will possibly drop to 500$ to 300$ each.

2. If China will not make a dump then bitcoin will remain the same.

Why would people want to make the same investment decisions to invest in a Chinese digital currency, like they did with Bitcoin. Every clever

investor will know the difference between private centralized ledgers and Bitcoin < public blockchain > A private ledger will never attract so

much investors, because of the higher risk involved with private blockchains. These blockchains have no public consensus, so they can

manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

[franky1]

So they can manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

agreed with all you said, but to highlight one part.

but there is money to be made in manipulating the supply.
pump and dumpers make profits, while outsiders not involved can only react to the drama/crises such pump and dumps cause. but not benefit from it because they are on the outside.

bankers will profit from their hyperledger sidechains. its why they are doing it, they are the casino. and like gambling.. the house always wins

[cellard]

So they can manipulate the supply, like they are doing with fiat currencies. So this will just be a digital version of fiat currencies.  

agreed with all you said, but to highlight one part.

but there is money to be made in manipulating the supply.
pump and dumpers make profits, while outsiders not involved can only react to the drama/crises such pump and dumps cause. but not benefit from it because they are on the outside.

bankers will profit from their hyperledger sidechains. its why they are doing it, they are the casino. and like gambling.. the house always wins

Indeed, they will profit from being the guys in charge secretly fucking around with the total supply. Can you imagine the disaster that it would be for bitcoin if devs could secretly raise the supply from 21 million to anything higher? That is how future fiat cryptos will work.

I have hope that people will realize the scam that that is, and they will then find bitcoin, and bitcoin isn't perfect but nothing in life is, and bitcoin is certainly a million times better than a closed souce govcoin nightmare.

[kumax]

Why would anyone want to buy a centralized cryptocurrency which is controlled by a bank from China?
If I want anything like this, I would rather buy fiat. If I want some kind of independence and anonymity, I'll go for bitcoin.
I don't believe it will have a big success.

Why did the chinese panic sell in recent hours at the news of the government wanting to do something about bitcoin? (they didn't even mention the word ban as far as I know..) the government has a very powerful network effect. They can trigger panic sell on the weak holders, they will make them run for the comfort of a regulated and stable price currency. But of course, you'll never get rich holding a boring ass centralized, regulated closed source crypto so they will eventually come back to the excitement of bitcoin.

But it doesn't answer my question. 
If the bitcoin holders are in panic, why would they buy another cryptocurrency instead of "safe" fiat?
What would be the difference?

the point is that the china central banks altcoin WILL BE THEIR FIAT

to citizens they wont see the difference at first. the banks will just swap their old database to a new database in very laymans terms. citizens wont notice the difference to how their bank balance is stored. as thats behind closed doors. but later they will start offering NFC smartwatches or  smartphone apps instead of debit cards/paper cash.

the benefit i can see is instead of card cloning and merchants storing card information. the hardware wallet(smartphone/watch/wristbands) just sends a signed tx to the merchant, making each transaction unique to that purchase. to avoid card cloning or merchant hacking. due to the fact a banking customer keeps the privkey safe in their own device.

the downside i can see is lose the device, lose access to your income and starve. in a utopian situation that was permissionless.. so to solve that, ofcourse the banks will have access to your key to 're-credit' you or give you a new device. making it still a permissioned/middleman payment system, meaning the system wont change much just the way a customer pays (NFC smartphone/watch instead of magnetic strip debit card or paper cash) will change

That answers it more clearly and I have to admit that it makes sense.
I saw on it only from the economic point of view, but you're right, that it could be successful because of its better technology.