[10/10/2018] China Should Consider Launching its Own Stablecoin, Central Bank Ex

[Lmaooo]

The Chinese government should consider launching its own yuan-backed stablecoin despite the current ban on cryptocurrencies, an op-ed in Chinese financial journal CN Finance reports Tuesday, Oct. 9.

An expert from the People’s Bank of China (PBoC), Li Liangsong, and professor of Fudan University Wang Huaqing wrote an article called “Analysis of Digital Stable Coins” for CN Finance — a bimonthly journal affiliated with the PBoC.

In the opinion piece, the authors provide a brief review of USD-backed coins, such as Tether, the Gemini dollar, and Paxos Standard. The researchers expect them to increase the role of dollar on a global stage and to suppress other fiats, with the yuan among them.

The authors suggested that China should analyze other companies’ experience and “double its efforts” to create a local stablecoin. However, other digital currencies have to stay prohibited in China, they stated.

Stablecoins have recently seen a boom with two USD-backed coins launching in the U.S. in September.

The Winklevoss twins, founders of crypto trading platform Gemini, acquired permission from New York regulators to release their own stablecoin, the Gemini dollar. Later, Circle — through a consortium that includes Bitmain — announced it is launching a USD-backed digital token dubbed the “USD Coin.”

Shortly after, the audit giant PricewaterhouseCoopers (PwC) partnered with decentralized lending platform Cred to offer their expertise in launching its USD-backed coin, especially in terms of transparency and “substantiation,”

The Chinese government first started its anti-crypto campaign in 2017 by closing all of the country’s cryptocurrency exchanges and banning Initial Coin Offerings (ICO). Following the move, the PBoC has repeatedly warned citizens about the risks of crypto trading.

Despite the crypto ban, the country has actively been exploring blockchain solutions. Earlier this autumn, the PBoC announced that its blockchain trading and finance platform is launching in Shenzhen. The ecosystem is also being tested in Guangdong, Hong Kong, and the Macau Bay Area and is being developed for cross-border trading. Later, the country’s official blockchain pilot zone was established in the Hainan province within a dedicated tech park.

Reference: https://cointelegraph.com/news/china-should-consider-launching-its-own-stablecoin-central-bank-expert-says-in-op-ed

[snipie]

Yuan stable coin is a good idea that will revive trading in Chinese exchanges and will boost cryptocurrencies again especially if people could use that coin in the daily life which is likely to take place because of the Chinese regimen 

[slaman29]

Yuan stable coin is a good idea that will revive trading in Chinese exchanges and will boost cryptocurrencies again especially if people could use that coin in the daily life which is likely to take place because of the Chinese regimen 

Honestly, I'm not a big fan of all the stablecoins. People say Tether was very useful, and all the stablecoins that are coming or are already in the market have helped the trading economy. Yes, and no. These coins have a purpose now, but once crypto becomes stable on their own in many years, these companies will effectlvely just be owning another version of fiat, backed by fiat.

It's a stupid cycle. Fiat is based on nothing and stablecoins are based on fiat. So we created value from nothing, and created even more value from that fiat based on nothing. Isn't crypto supposed to be the solution to that?

[Theb]

This is a good idea but who will develop or even back this stablecoin up? Certainly it cannot be their own goverment as it means that their stablecoin will be a centralized coin, the possibility of it being run by an ico developer in China is also not happening not unless it is allowed by the Chinese government to even be promoted inside their country. From what I remembered events and promotions relating to ICOs or even blockchain related events is being prohibited in China what more will it be not allowed if there is a cryptocurrency based on their Yuan?

[hugeblack]

The idea of cryptocurrency backed by paper money seems stupid. Where the importance of cryptos stems from being decentralized, cannot be printed, and are not subject to the rules.
The production of any paper currency in digital form "cryptocurrency/ using blockchain" is a misuse of this technology, and the coins produced will be less useful.

This answer is assuming the validity of this news.