China Becomes First Country in the World to Test a National Cryptocurrency

[rumex]

China's central bank has developed its own cryptocurrency, which is now being tested. Cryptocurrencies have the potential to not only benefit China, but the rest of the world, due to their basis in blockchain.
Benefits of Digital Currency
China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that it could end up in circulation in the near future. It would be introduced alongside the China’s primary currency the renminbi (also called the yuan). China will be simulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks.
Click to View Full Infographic
The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth.
The Rise of Cryptocurrencies
Since Bitcoin’s humble beginnings back in 2009 (when it was only valued at around 0.0007 USD) the digital currency, and the very idea of cryptocurrencies in fact, has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A single Bitcoin is now worth more than $2,500. Now many national economies, as China’s plan shows, are considering the idea of developing their own variant.
Although China’s experimental approach to simulate a self-developed cryptocurrency’s usage is the first of its kind, other countries and institutions have made strides in that direction as well. The Deputy of Russia’s central bank has emphatically stated that “regulators of all countries agree that it’s time to develop national cryptocurrencies.” Over 260,000 stores in Japan will begin accepting Bitcoin as legal tender this summer, and big banks like Santander have announced plans to develop their own version.
Cryptocurrencies have the potential of revolutionizing not only the business world, but many methods of transaction. There has already been talk of using cryptocurrencies to administer Universal Basic Incomes due to their traceability, as well as for the delivery of human aid; the potential for which was demonstrated by a recent experiment to help refugees in Jordan by the UN.

[cnmgfb]

end of road for all coins

[CrowdFunder]

Your post has limited information on what kind of format this coin would take but it sounds like it will be a Chinese version of ripple, some people will love it and others hate it but I don't see it taking over the cryptospace.

[asdalani]

end of road for all coins

The price of the Cryptocurrency in China might not have a volatile price like Bitcoin does unless there is an underground exchange for it. If there is an underground shop for Cryptocurrency then the price of that Cryptocurrency for China will be much lower than the price that people usually purchase it at.

[andrew2k]

I believe I've read about this in an article as well, seems interesting. The blockchain and cryptocurrencies in general truly represent the future and these big boys, China and Russia, seem to be two of the first nations to put their hands on them in a more serious manner.

[topesis]

I can't wait to see more of this countries follow this step, the difference between Bitcoin and fiat crypto is discentralisation and inflation. That means they can create their own tokens at will

[lambofan]

Is this confirmed? because of being true I do not think the other countries do not do the same, I want to say if any one brings out something new, others countries will do not want to stay behind, and perhaps those will want to launch their own solutions.

[ranreichman]

What does a national cryptocurrency mean? If it's a blockchain on which you can transfer Renminbi between ppl then that's fine but not such a big deal. No ChinaCoin will replace the main cryptos

[gamaman990]

i doubt it'll be widely adopted because no central banks in their right mind would design a crypto in the classic sense. it will be more like xrp and with even more controls. the mass crowd will shun from it.

[casper819]

i doubt it'll be widely adopted because no central banks in their right mind would design a crypto in the classic sense. it will be more like xrp and with even more controls. the mass crowd will shun from it.

Guess it's a way China escape from USD chokehold. They will push it's use in import/export trades. Who knows? It could well become the first crypto that gets mass real-life use.

[bbs98]

I hope other countries can follow china
To develop cryptocurrency,
I hope it will all come true in the near future..

[ChinkyEyes]

Could you post the source? 

[Hueristic]

When's the ICO !!!!!!!!!!!!

[realistic1]

very fake news

[ðºÞæ]

i doubt it'll be widely adopted because no central banks in their right mind would design a crypto in the classic sense. it will be more like xrp and with even more controls. the mass crowd will shun from it.

Lol, you naive brainwashed tv junkie. The mass crowd will applaud it when xyz country pays its welfare recipients in crypto which then can be used in goofment approved shops and nothing else. Full control how much booze ....... the particular address can buy. Once the foot in the door unemployed benefit recipients next,.......

A fully controlled coin like Ripples XRP is no problem for any goofment, as many as coins as needed at the desired price.

[cybernetik7]

Strangely enough, if it is structured properly with a limited coin supply, I might actually invest in a government run blockchain. Politics aside, I could see it might be a good investment.

[Hueristic]

Strangely enough, if it is structured properly with a limited coin supply, I might actually invest in a government run blockchain. Politics aside, I could see it might be a good investment.

Unless it's Venezuela!

[KingScorpio]

China's central bank has developed its own cryptocurrency, which is now being tested. Cryptocurrencies have the potential to not only benefit China, but the rest of the world, due to their basis in blockchain.
Benefits of Digital Currency
China’s central bank — the People’s Bank of China — has developed a prototype of a cryptocurrency that it could end up in circulation in the near future. It would be introduced alongside the China’s primary currency the renminbi (also called the yuan). China will be simulating possible scenarios and running mock transactions using the cryptocurrency with some commercial Chinese banks.
Click to View Full Infographic
The potential benefits of developing a digital currency are significant, particularly in China. First, it would decrease the cost of transactions, and therefore make financial services more accessible, which would be a big help to the millions of people in the country who are unconnected to conventional banks. Second, as it would be supported by blockchain, it has the potential to decrease the rates of fraud and counterfeiting, which would be of service to the government’s attempts to reduce corruption — a key concern. Third, it would make the currency easier to obtain, which would increase the rate of international transactions, allowing for more trades and faster economic growth.
The Rise of Cryptocurrencies
Since Bitcoin’s humble beginnings back in 2009 (when it was only valued at around 0.0007 USD) the digital currency, and the very idea of cryptocurrencies in fact, has grown monumentally. The total market cap of cryptocurrencies on April 1st of this year was over $25 Billion. A single Bitcoin is now worth more than $2,500. Now many national economies, as China’s plan shows, are considering the idea of developing their own variant.
Although China’s experimental approach to simulate a self-developed cryptocurrency’s usage is the first of its kind, other countries and institutions have made strides in that direction as well. The Deputy of Russia’s central bank has emphatically stated that “regulators of all countries agree that it’s time to develop national cryptocurrencies.” Over 260,000 stores in Japan will begin accepting Bitcoin as legal tender this summer, and big banks like Santander have announced plans to develop their own version.
Cryptocurrencies have the potential of revolutionizing not only the business world, but many methods of transaction. There has already been talk of using cryptocurrencies to administer Universal Basic Incomes due to their traceability, as well as for the delivery of human aid; the potential for which was demonstrated by a recent experiment to help refugees in Jordan by the UN.

i dont think there is something wrong if nationstates create defacto fiat currencies to power their infrastructure, the problem becomes when the nationstate banker elite starts fighting all financial opposition,

they will then destroy the cultural diversity of their country and focus the entire society on their bank regulations....

[caneca]

If this is true, can be huge for their economy if work out. They would be the first country to do such a thing, leaving in front of the others.


China is a very china is a very interesting market, they like to have their own things. They have their uber, their twitch, their amazon, and now their own cryptocurrency.
I guess they don't like the rest of the world or think they can do better 

[mklost]

Chinese goverment will own total supply at first.