China central bank to release digital currency prototype in 2017

[Mometaskers]

But then this would be just a digital fiat that they'd use to replace the yuan. I don't see any advantage in this compared to bitcoin. Well, they can do whatever they want, so long as they don't interfere with bitcoin's development and use. If they compel their citizens to exchange their bitcoins for this digital fiat, we could possibly end up with useless bits.

[ebliever]

Why should I favor a centrally controlled government currency that can be manipulated and controlled, over a free-market and decentralized cryptocurrency like bitcoin or zcash?

The only reason I can think why a person would choose the first option is because someone is coercing them to do so. Governments have a lot of firepower and a history of using it. So this kind of development is ominous.

[mrbigmugs]

But then this would be just a digital fiat that they'd use to replace the yuan. I don't see any advantage in this compared to bitcoin. Well, they can do whatever they want, so long as they don't interfere with bitcoin's development and use. If they compel their citizens to exchange their bitcoins for this digital fiat, we could possibly end up with useless bits.

to me i have no idea about this and i am hearing this for the first time. to me i think chines are in majority to use bitcoin  as compare to other state of the world most of the miners are also from China. but still i do  not think that they can manipulate the price of bitcoin because bitcoin is a universal currency and not a regional one.

[xuan87]

well it won't affect crypto currency too much, it is just a fiat that being change into digital currency, and the coin is not going to anonymous and it will be centralized, so there is no different with fiat, I don't think it will be successful, the government won't succeed to rule bitcoin down, the user used bitcoin because the user want a currency that free from control

[calkob]

So what, banks will do what ever they can to try and stay relevant, but their greed will always be their downfall, people want to control their own finances and they wont settle for a government controlled/inflated currency even if it works of a blockchain. 

[romero121]

So what, banks will do what ever they can to try and stay relevant, but their greed will always be their downfall, people want to control their own finances and they wont settle for a government controlled/inflated currency even if it works of a blockchain. 

Though people would like to be with the decentralized currency its still not legalized in most countries and several countries were hardly opposing it. In such scenarios sure such centralized digital form of fiat to gets the attention of country men and if found successful then surely they prefer bitcoin for other transactions, because their own country currency gets circulated within the country.

[shinratensei_]

Expecting it will be like USDT.... But the advantages can be taking from them, the Chinese people are no need for transacting his amount through the fiat.
Is this will give an advantage for bitcoin or will be restricting the competition in crypto. Interesting for watch. 

[cellard]

Expecting it will be like USDT.... But the advantages can be taking from them, the Chinese people are no need for transacting his amount through the fiat.
Is this will give an advantage for bitcoin or will be restricting the competition in crypto. Interesting for watch. 

USDT seems interesting to trade bitcoin without having to deliver all of your personal data to the exchanges... has anyone tried it? In poloniex there is a 1000+ BTC market of USDT, seems enough to do some trading.

How does Tether work?

Tethers exist on the Bitcoin blockchain through the Omni Protocol. The Omni Protocol is open source software that interfaces with the Bitcoin blockchain to allow for the issuance and redemption of cryptocurrency tokens, in our case, “tethers”.

Tether Platform currencies are 100% backed by actual fiat currency assets in our reserve account. Tethers are redeemable and exchangeable pursuant to Tether Limited’s terms of service. The conversion rate is 1 tether USD₮ equals 1 USD.

The Tether Platform is fully reserved when the sum of all tethers in circulation is greater than or equal to the balance of fiat currency held in our reserve. Through our Transparency page, anyone can view both of these numbers in near real-time.

Seems like a good idea... you could trade anonymous in poloniex as long as you don't need to get out more than $2500.

[YuginKadoya]

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

If it is like bitcoin a Cryptocurrency I think it would need to wait many of years so it could succeed just like bitcoin did, but if it is just a fluke or using fiat as digital currency it is just like a online storage like paypal, by sending dollars as transaction well let's just hope it would not cause any trouble in the bitcoin community.

[hatshepsut93]

Today you can hide your operations away from the government by buying btc with cash, but as governments move towards digital currencies, they'll get much more control over all transactions, and it will be harder to obtain Bitcoins privately.

[electronicash]

Do you think Antshare will soon have its advantage when their central banks digital curriency comes to realization? Antshares are known for its support by the chinese to which call this the Chinese ETH.

[Juggy777]

Well they can try and good luck to them. It shall fall flat on their face, cause it's again going to be centralized and government can track it, and not to forget the taxes they need to pay on the Fiat digital currency. Plus it's value won't increase like btc, it will remain same just trying to be cashless invokes lots of risk. Next year we all will read of how they tried but did not succeed lol

[iamTom123]

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.

I agree with some of your views. The problem with Bitcoin is that it can be manipulated all the way from China since Chinese coin holders got a big percentage of the total Bitcoin volume. It can then be easy to see that China can be the downfall of Bitcoin...

[Dudeperfect]

I am not surprised by this news because I believe that the, blockchain has the potential to handle much more things than just crypto payments. People are working on a blockchain based property ownership recording system. In next few years we might see the blockchain technology in many sectors which not necessarily be related to payments. It has very good potential.

[mining1]

Centralization is bitcoin's achille's heel. One announcement of chinese government and bitcoin dropped 30%, and it's still dropping. What if in 6 months they decide it isn't enough and they ban bitcoin in china ? Most bitcoins are owned by the chinese since they mine it, if they dump the price can crash to 100$ easily. Or if the government decides to shut down the mining farms ? Any of these decision can kill bitcoin forever, since the difficulty cannot be adjusted in time, the remaining farms outside china cannot keep up with low hashpower because of the huge difficulty and bitcoin dies.
These are hard times for the public crypto / blockchain scene, because when bitcoin dies, most altcoins will die aswell.

[cellard]

Centralization is bitcoin's achille's heel. One announcement of chinese government and bitcoin dropped 30%, and it's still dropping. What if in 6 months they decide it isn't enough and they ban bitcoin in china ? Most bitcoins are owned by the chinese since they mine it, if they dump the price can crash to 100$ easily. Or if the government decides to shut down the mining farms ? Any of these decision can kill bitcoin forever, since the difficulty cannot be adjusted in time, the remaining farms outside china cannot keep up with low hashpower because of the huge difficulty and bitcoin dies.
These are hard times for the public crypto / blockchain scene, because when bitcoin dies, most altcoins will die aswell.

China officially banning bitcoin and going against the miners could hurt bitcoin's price, but it's far from killing bitcoin "forever". We have already seen the price go from 1160 dollars to almost 2 figure dollars, and we saw it go from there to 4 figures again. Bitcoin has already demonstrated that it can be reborn from "death". Now it's the "if it did it once it can do it again" mentality is in the global market psychology.

[mining1]

No. Because back then bitcoin had low difficulty, and was more decentralized. But things changed, nowadays probably more than 90% of hash power is in china. So if 90% of the hashpower vanishes over night the network won't be able to recover because the low hashrate outside the china won't have enough power to keep the network running. And the adjust period is <1week. In the meantime, there'll be a war to exit bitcoin to alts or fiat which would further slow down the already clogged network in a spiral to death.
Yeah, eventualy things would settle down, but a 5-50$ bitcoin would never recover anymore since all the cult believing which is what is sustaining bitcoin today will be gone then. The impact on it's image would be too severe.
This is why POW cannot work long term.

[franky1]

No. Because back then bitcoin had low difficulty, and was more decentralized. But things changed, nowadays probably more than 90% of hash power is in china. So if 90% of the hashpower vanishes over night the network won't be able to recover because the low hashrate outside the china won't have enough power to keep the network running. And the adjust period is <1week. In the meantime, there'll be a war to exit bitcoin to alts or fiat which would further slow down the already clogged network in a spiral to death.
Yeah, eventualy things would settle down, but a 5-50$ bitcoin would never recover anymore since all the cult believing which is what is sustaining bitcoin today will be gone then. The impact on it's image would be too severe.
This is why POW cannot work long term.

facepalm

dont call out foolish numbers

[densuj]

Well i think it is fiat money that become digital currency, because there are regulator, controler and something are like other fiat money.
That is not digital currency I guess, is like bitcoin and other fair digital currencies. It can be manipulated by government and central bank.
Although maybe it will be more stable than other altcoins, but i am doubt the people at China will use it for investing, i will see until it be launched on the markets.

[davis196]

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

China doesn`t need a central bank digital currency.They can adopt bitcoin and use it

as a government coin.Their control is total,they have the biggest miners.