[2017-10-14] China Eyes A State-Owned Cryptocurrency

[kassia]

China Eyes A State-Owned Cryptocurrency
Early September, China banned ICOs and cryptocurrencies. A month later, Chinese official Yao Qian reportedly called for a state-owned digital currency.

That’s weird. Isn’t it against the law?
Looks like it’s not. Banning ICOs and bitcoins under the flags of protecting people from scam risks, Chinese government was in fact clearing up the space for a state-issued alternative.

What now?
Now Yao Qian – who is the Director of the Digital Currency Research Institute under the People's Bank of China – claims that a state digital currency will help to stabilize domestic fiat.
 
Read more here https://t.me/yoken/53

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[Irvinn]

For a long time there was no news from China. How was the information that since October 1 the Chinese government is going to regulate the circulation of the crypto currency in its legislation, and then the information silence almost came. Still, China is going to issue a "state" crypto currency? It sounds quite absurd, given that the crypto currency can not be tied to the state. This is again some kind of experiment in China. This country is being reexamined to what will remain not so much without leadership in the field of crypto currency, but far away from the world market of crypto currency.

[richardsNY]

It sounds quite absurd, given that the crypto currency can not be tied to the state.

It obviously can. They could either just set up a whole new payment infrastructure, or decide to tie their local fiat currency to a crypto token, which I believe is a more realistic long term option for governments to go for. It's all about the control they will have with their own (heavily centralized) crypto currency. People will get to enjoy all benefits that come with crypto currencies, but still are tied to a constantly in value decreasing and basically unlimited supply currency tool. I think the average joes there will definitely like it, where the more out of the box thinking people will still see that they don't actually move forward with this. It's just the same garbage, but then in a different jacket.

[digaran]

Chinese eyes are small we all knew that, I think they have lost their brains because of eating dogs and cats. mild lol. every country has digital currency but they all are centralized and controlled by their banks. this new digital currency will be the same. they can't tell their people what to do, if their people decide to use Bitcoin, no body can stop them.

[TravelMug]

It sounds quite absurd, given that the crypto currency can not be tied to the state.

It obviously can. They could either just set up a whole new payment infrastructure, or decide to tie their local fiat currency to a crypto token, which I believe is a more realistic long term option for governments to go for. It's all about the control they will have with their own (heavily centralized) crypto currency. People will get to enjoy all benefits that come with crypto currencies, but still are tied to a constantly in value decreasing and basically unlimited supply currency tool. I think the average joes there will definitely like it, where the more out of the box thinking people will still see that they don't actually move forward with this. It's just the same garbage, but then in a different jacket.

This may very be well one of the parameter that drove them to be anti-bitcoin. They want to create their own state crypto currency that they want their citizens to used. This is back up by their government so its heavily centralized. This is no different from a bonds or mutual funds. I don't think this will gain traction from the Chinese bitcoin community as this is only trade inside China. And I'm sure its value will not grow over the course of time because its only confined on their backyard. Chinese wants bitcoin, offering this kind of alternative will not shift the tide for most of time. Lets see how this pans out but I believed it will not be a successful experiment for the Chinese government.

[entrepmind23]

It is not surprising that China would do something like this because it has been a rumor that they would create their own crypto and now there is a confirmation of it. China would always want to have their own version. We can cite it from the previous companies that have been successful like google, facebook, amazon etc. and they are having their own version of that companies. They have seen the potential of cryptocurrencies and attempted to degrade it but since they are not successful in doing it, they decided to create their own. Bitcoin is decentralized and a revolutionary currency that get out of the control of the government but they don't want to lose their control so they would make a cryptocurrency that they can still control. It may be named as cryptocurrency but still it doesn't make any difference to fiat as it is still unlimited and centralized.