[2017-09-20] China Should Create Its Own Cryptocurrency ‘As Soon as Possible’

[nickbelski]

A researcher at the Central University of Finance and Economics suggests that the Chinese government should start its own cryptocurrency.

The Current State of Bitcoin in China

In the last couple of days, there have been a lot of rumors flying around about the future of Bitcoin and other cryptocurrencies in China. Currently, Chinese regulators have forced prominent cryptocurrency exchanges like BTCChina and Huobi to shut down their operations by the end of the month. The uncertainty about the future of cryptocurrency trading in China has caused a significant price drop for Bitcoin and other cryptocurrencies.

A National Cryptocurrency?

With Chinese regulators heavily cracking down on cryptocurrency exchanges, many speculate that the central bank of China may issue its very own cryptocurrency. Huang Zhen, a researcher at the Central University of Finance and Economics suggested that:

    "The PBOC it should start its own sovereign digital currency as soon as possible."

A rough translation from Zerohedge further explains his reasoning behind his thoughts on an official Chinese digital currency:

    "In order for the Chinese government to prevent and control the risk of virtual currency, it decided to prohibit the issuance of ICO tokens, and stop the trading of cryptocurrencies and other virtual currencies on exchanges, to better protect the interests of China’s financial consumers, and to prevent the spread of currency risk to China’s financial system, safeguard China’s financial security and the stability of important economic initiatives. The sovereign state is still the fundamental player in global politics, and carries with it the characteristics of the world financial system. Cryptocurrencies and other virtual currencies attempt to challenge the sovereign state’s right to issue currency, requiring the nationalization of currency issuance. China has a clear understanding of digital forms of money, and is actively engaging in relevant work. The central bank has set up a research group and a digital money research institute to explore the digitization of sovereign money. After this round of virtual money markets supervision, we expect under the auspices of the Chinese central bank to launch our own sovereign digital currency as soon as possibleto help maintain China’s leadership in the development of global digital finance."

Chinese official fear that a lot of capital is flowing out of China through cryptocurrencies like Bitcoin. A digital currency issued by the central bank of China would be able to prevent further capital flows from the country. A recent article also mentioned the possibility that the central bank of India might also issue its own fiat cryptocurrency. There is no doubt that government officials are increasingly more worried from the cepabilities of cryptocurrency, but the question remains how they will properly regulate them.

http://bitcoinist.com/china-should-creates-its-own-cryptocurrency-as-soon-as-possible/

[aso118]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

[Kemarit]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

They already did. Bitcoin China (BCC/BCH). LOL.

I think they just want to stop the flow of Yuan outside that's why in essence creating their own would keep all the money inside the country. But I haven't seen any country who has become successful in creating it own's cryptocurrency. Still if they want it to be useful outside of China then they have to convert it to bitcoin, so its just the same as before. I have the same notion that China has distance away itself from bitcoin because they are affected economically. And being communist, they want to control going in and out of the country. Unfortunately, this is not the case for bitcoin that's why they decided to war against it. Let's see how things will go through in the future for them without bitcoin.

[hatshepsut93]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

Rumors about governments issuing their own concurrency were around for a long time already, but so far it's just rumors. However, even if they will emerge in the future, I think their role would be to be a decoy to distract people from the real cryptocurrencies. Some Bitcoin opponents realize that people are no longer buying "Bitcoin is a fraud and bubble" narrative, so they try to sell "blockchain not Bitcoin" instead, and we as a community should explain to newbies the difference between decentralized and centralized blockchains.

[Taki]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

That's right. I am also sure that national crypto-currencies is a good idea, but I think they will not be so popular as Bitcoin and other. What is attracting the most people here? Bitcoin's price which is rising like a crazy and you can become rich in a second if you are a patient holder. But national crypto is going to be cost the same as the national fiat on the world market, so I don't see any necessary reason to buy it or to invest in it.

[Samarkand]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

Rumors about governments issuing their own concurrency were around for a long time already, but so far it's just rumors. However, even if they will emerge in the future, I think their role would be to be a decoy to distract people from the real cryptocurrencies. Some Bitcoin opponents realize that people are no longer buying "Bitcoin is a fraud and bubble" narrative, so they try to sell "blockchain not Bitcoin" instead, and we as a community should explain to newbies the difference between decentralized and centralized blockchains.

Because governments are slow as hell in adopting innovative technologies.
You would be completely embarassed if you would see the kind of software
that even 1st world countries use in certain government agencies.

I think we will eventually see the first real government-issued cryptocurrency, but
it will probably be in 5-10 years.

[Argoo]

If China creates its own centralized currency, it will not solve this problem. Own crypto currency can help in certain sectors of the country, accelerate the implementation of various operations, improve the provision of goods and services within the country. However, at the international level, China will not be able to successfully conclude and conduct transactions without a decentralized crypto currency. Decentralized and centralized crypto currency are different in nature and they can hardly cooperate effectively.

[darkangel11]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

The chinese people will, they will have no other choice.
The government could make sure to bun all other cryptocurrencies before launching their own one and the investors would flood the market with money, because they are innovative and want to invest. People in China love new technologies, it's their government that is still mentally in the cold war era.

[BitFinnese]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

This is not a question of who will support it, definitely its citizen will embrace it.  China does not need other citizen to embrace their coin, they have enough population for it.  Besides, it can be used inside their country, so they do not need any outsiders for it.  The question here is whether they will create one and let the blockchain in publilc view.  We all know government finance system are full of secrets.  They hide information away from their client especially the profit being generated on their clients investment.

[Falgorn]

China announced that it considers the decentralized crypto currency to be a threat to its economy, because through it there is an uncontrolled leakage of money from the country and the spoil from such activities is difficult to tax. In addition, the semi-communist country wants to control the financial activities of its citizens. One of the solutions to this problem seems to be that the Chinese government sees in the creation of its own, already centralized, crypto currency. In my opinion, such an approach to solving this problem will not be effective, since such a crypto currency will go predominantly domestically and will not serve external trade agreements with other countries, that is, it will not serve as a means of attracting investment. Using centralized crypts will drive the country to self-isolation and will not lead to the development of China's economy, to which his government is now seeking.

[deadsilent]

That's funny coz i don't think people will buy their coin because they have the control to it. It's only their citizens will accept that. People love decentralized cryptocurrency. That's why i don't think their idea of creating their own cryptocurrency will be successful. But yeah, China don't have choice but to create their own cryptocurrency to stop the flow of capital to cryptocurrencies. But that's not enough. They are just digitalization of their money. This makes no difference. Now way that people outside their country will accept this cryptocurrency because it's centralized.

[Granxis]

I know that China entered such studies, I believe that a coin will emerge as a result of their work, but they will not be accepted around the world, they will use it among themselves. Just like facebook, whatsapp

[coolcoinz]

I know that China entered such studies, I believe that a coin will emerge as a result of their work, but they will not be accepted around the world, they will use it among themselves. Just like facebook, whatsapp

Next step, China bans the Internet and makes their own
There are two outcomes if they make their own crypto and ban Bitcoin. Either it will be used in China and becomes popular there, but the rest oif the world will ignore it, just like they're ignoring BCC, or it will not become big even in China and fails.

[Bolt Brownie]

They could create it, and it could be very practical and even used all around the world. The thing is, if it is backed by the government and a central bank, the it's centralized, so it's not bitcoin, also if it is not scarce it will work just like fiat, and they can just make more out of thin air, so it will have the same problems paper money has, and again it wont be like bitcoin.

[planfox]

They could create it, and it could be very practical and even used all around the world. The thing is, if it is backed by the government and a central bank, the it's centralized, so it's not bitcoin, also if it is not scarce it will work just like fiat, and they can just make more out of thin air, so it will have the same problems paper money has, and again it wont be like bitcoin.

It will not be like bitcoin. No centralized currency can match up with bitcoin. I do not understand the meaning of such a currency? It will be state, which means it will lose meaning for many users. This currency can not replace bitcoin

[richardsNY]

It will not be like bitcoin. No centralized currency can match up with bitcoin. I do not understand the meaning of such a currency? It will be state, which means it will lose meaning for many users. This currency can not replace bitcoin

If whatever government is going that way, it isn't meant to replace Bitcoin, but to prevent their own old fashion financial system to get replaced. It's them offering people what they want, which is more usability and convenience, but then without the decentralized nature of Bitcoin. I am quite sure that a lot non crypto enthusiasts will accept it without hesitation, because at the end of the day, not everyone is interested in something that isn't issued or controlled by whatever central authority.

[SvenBomvolen]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

That's right. The national crypto-currency should to cost the same as national fiat on the worlds market, so what is going to be the point of it? Online banking and payment already exist, so, by my opinion there is no need for creating of national crypto-currency, it's just not going to be popular.

[1Referee]

The national crypto-currency should to cost the same as national fiat on the worlds market, so what is going to be the point of it? Online banking and payment already exist, so, by my opinion there is no need for creating of national crypto-currency, it's just not going to be popular.

Transacting through the blockchain offers far more advantages over the traditional way, and that not only for the people themselves, but also for banks and such. Currently, the banking system has basically reached its limit, from which it can't really grow much further - implementing their own version of Bitcoin would allow them to keep growing, but then in a far more cost efficient way. It's not for nothing that governments and financial institutions are pumping plenty of millions into research and development of their own ultimate blockchain. I am fairly sure that it is just a matter of time (perhaps 5 years at most) before we see an actual government issued crypto currency that is meant to stimulate mass adoption.

[veleten]

if any country could do it this would be China
this would be like 9 years late,but the example of Etherium and its success shows that nothing is impossible
all they have to do is come up with an  idea,something that bitcoin or any cryptocurrency haven't offered yet
backed by the state and having the top chip manufacturers and mining facilities,this could work....

[iamTom123]

It can create one right now, but who is going to support it? Bitcoin has become so popular only because it is decentralized. Even if people within China accept it for daily transactions, it would be useless outside China. No possibility of remittances or international payments.

That's right. I am also sure that national crypto-currencies is a good idea, but I think they will not be so popular as Bitcoin and other. What is attracting the most people here? Bitcoin's price which is rising like a crazy and you can become rich in a second if you are a patient holder. But national crypto is going to be cost the same as the national fiat on the world market, so I don't see any necessary reason to buy it or to invest in it.

I am predicting that it would just be functioning almost the same as yuan and it can be one of the most boring cryptocurrency ever! China is still not living in reality and is confining their own understanding of what is happening with Bitcoin according only to the things they want to perceive. In other words, they have their own world and we should grant them the right to enjoy it.

However, since China is known to be a dictatorial type of a regime, they can require all people to adopt their own national cryptocurrency and it can also be very popular but then it can be limited to mostly in China and since its value will be determined by the government it can also be risky...one order from the government that it would be devaluated and it can be done.