China Creates Currency to Cancel-out Cryptocurrency

[Vishnu.Reang]

Contrary to what many of the users posted here, I believe that this new cryptocurrency is going to have a major impact in China. But my expectation is that it may affect Tether more than Bitcoin. In China, the exchange users rely on USDT, since fiat is not allowed. If this new digital equivalent of CNY is available, then people would just dump their USDT for the new currency. And it is going to destroy Tether.

[kravas86]

To date, no positive changes have been observed in this sector. On the contrary, the Chinese have become more wary of cryptocurrency. I think that if the Chinese can legalize this stablecoin it will benefit the entire cryptocurrency industry. Telegram and Libra will be able to resolve their problems with regulators more quickly.

[electronicash]

To date, no positive changes have been observed in this sector. On the contrary, the Chinese have become more wary of cryptocurrency. I think that if the Chinese can legalize this stablecoin it will benefit the entire cryptocurrency industry. Telegram and Libra will be able to resolve their problems with regulators more quickly.

Gram and Libra's problem will be resolved by themselves, Chinese digital yuan may not have anything to do with it.

China is known to have manipulated their currencies without digital yuan but once its going to be released, they may dominate it all. this crypto would be centralize though, government can track it all and i guess Chinese exchanges will be mandated to use it too instead of USDT. we'll see that it will be used mostly to their exchange as their stablecoin which BTC/CNY could have more volume.

[Brunus]

All governments - and of course the Chinese one, particularly obsessed with control - try to do something about the advance of cryptocurrencies. Admittedly, they have managed to discourage the public so far, and have created panic, mistrust and insecurity.
But they can't last long.

[pgbit]

The way the Chinese Government seems to be fast tracking the cryptocurrency policy is quite amazing, from rejecting it in the initial stage, they have done an about-face and are now strong supporters of cryptocurrency and they are doing it quite speedily.

[Teraboy]

The way the Chinese Government seems to be fast tracking the cryptocurrency policy is quite amazing, from rejecting it in the initial stage, they have done an about-face and are now strong supporters of cryptocurrency and they are doing it quite speedily.

It seems strange to see you are creating such comments about that and why? can you tell me when xi-jinping is mentioned crypto on his statement last days? I don't even see that.
You should read whole of article and you must not take the title as your main opinion and then take it as your conclusion too.

[nanaimogold]

China Creates Currency to Cancel-out Cryptocurrency
The Chinese government is on a mission to keep people dependent on government-controlled currency.
China’s government has now devised a cockamamie scheme where they will use their central bank and commercial banks to distribute a newly created digital fiat currency
in an attempt to trick citizens into believing that they have cryptocurrency all in hopes that the people will use the digital fiat instead of real cryptocurrency and stay government currency dependent.
The fiat digital currency will be totally centralized and the plan is to replace the current currency, the yuan,
with the new digital currency which right now is being referred to as Central Bank Digital Currency (CBDC). The digital currency will be issued to commercial banks via the central bank, and the commercial banks will, in turn, be able to distribute it to the people.

How can they create a coin to cancel out cryptocurrency. Technically incorrect but from economic view point I think I might just understand where this is going. They want to hoist a crypto people will look up to and they will exercise controls over it. I am assuming it will be another stable coin which will still remain second to bitcoin in global ranking (not Chinese ranking where Neo comes first)

[magneto]

I honestly don't know why people are getting excited over the Chinese news involving Xi's stance on progressing blockchain development. It is clear that they are trying to implement and develop their own set of protocols and potentially have a currency hosted on a blockchain, not to adopt bitcoin.

Otherwise, why would they still uphold the other restrictions on bitcoin exchanges and businesses?

Makes no sense. Markets are FOMOing on news that is irrelevant.

[senin]

Contrary to what many of the users posted here, I believe that this new cryptocurrency is going to have a major impact in China. But my expectation is that it may affect Tether more than Bitcoin. In China, the exchange users rely on USDT, since fiat is not allowed. If this new digital equivalent of CNY is available, then people would just dump their USDT for the new currency. And it is going to destroy Tether.

I agree with your opinion. China's stable CBDC coin will have a huge positive impact on China's development and take on some of the current popularity of USDT. The Chinese would be happy to use their stable coin better than the USDT, and this is a huge scale and huge market. In addition, the Chinese are now very actively trading with the whole world, including using online stores. Here, China's stable coin will be very convenient to use.

[SamboNZ]

Contrary to what many of the users posted here, I believe that this new cryptocurrency is going to have a major impact in China. But my expectation is that it may affect Tether more than Bitcoin. In China, the exchange users rely on USDT, since fiat is not allowed. If this new digital equivalent of CNY is available, then people would just dump their USDT for the new currency. And it is going to destroy Tether.

I agree with your opinion. China's stable CBDC coin will have a huge positive impact on China's development and take on some of the current popularity of USDT. The Chinese would be happy to use their stable coin better than the USDT, and this is a huge scale and huge market. In addition, the Chinese are now very actively trading with the whole world, including using online stores. Here, China's stable coin will be very convenient to use.

Would exchanges list that Chinese money though? They can take it from the exchanges because it has a centralized system. I see disadvantage than advantage from getting it listed.

[Eugenar]

China Creates Currency to Cancel-out Cryptocurrency
The Chinese government is on a mission to keep people dependent on government-controlled currency.
China’s government has now devised a cockamamie scheme where they will use their central bank and commercial banks to distribute a newly created digital fiat currency
in an attempt to trick citizens into believing that they have cryptocurrency all in hopes that the people will use the digital fiat instead of real cryptocurrency and stay government currency dependent.
The fiat digital currency will be totally centralized and the plan is to replace the current currency, the yuan,
with the new digital currency which right now is being referred to as Central Bank Digital Currency (CBDC). The digital currency will be issued to commercial banks via the central bank, and the commercial banks will, in turn, be able to distribute it to the people.

Chinese people can surely identify if what they have is a real cryprocurrency or not, how? If they can use it to buy other cryptocurrency through the exchanges that offers conversion. Regarding this, there will be a huge impact to the altcoins and bitcoin as Chinese will surely see the benefits that these crypto is providing in terms of market investment using cryptocurrencies.

[Beparanf]

I honestly don't know why people are getting excited over the Chinese news involving Xi's stance on progressing blockchain development. It is clear that they are trying to implement and develop their own set of protocols and potentially have a currency hosted on a blockchain, not to adopt bitcoin.

Otherwise, why would they still uphold the other restrictions on bitcoin exchanges and businesses?

Makes no sense. Markets are FOMOing on news that is irrelevant.

As if all were planned from the announcement this week to the news in their bank. Since the exchanges are still in banning state and only blockchain is they considered that means they are still in the idea of their own coin/token that will be controlled by the government. We might receive another adoption in them this week or next month on all the plans they do before the day they announce their blockchain interest. More FOMO coming from china news to watch for.

[Flor1982]

I'm doubtful about this news. Do you have links to share that this is really the plan of China? Because i'm starting to believe that China will really start the Altcoins season by supporting and endorsing some Altcoins and pushing on the blockchain in which its looks like it will trigger the bullish run.
https://news.bitcoin.com/china-ranks-35-crypto-projects-as-president-xi-pushes-blockchain/

[zeze18]

I think eventhough china make their own controlled curreny, the people of china will not use it and still stick with cryptocurrency because people want freedom and the current cryptocurrency is what they need.
Decentralized and the owner of the currency is undetectable are the 2 things that make people love cryptocurrency

[tinyteapot]

China Creates Currency to Cancel-out Cryptocurrency
The Chinese government is on a mission to keep people dependent on government-controlled currency.
China’s government has now devised a cockamamie scheme where they will use their central bank and commercial banks to distribute a newly created digital fiat currency
in an attempt to trick citizens into believing that they have cryptocurrency all in hopes that the people will use the digital fiat instead of real cryptocurrency and stay government currency dependent.
The fiat digital currency will be totally centralized and the plan is to replace the current currency, the yuan,
with the new digital currency which right now is being referred to as Central Bank Digital Currency (CBDC). The digital currency will be issued to commercial banks via the central bank, and the commercial banks will, in turn, be able to distribute it to the people.

Chinese government is only trying to create a digital note for its citizens, they are trying to make their currency easily accessed to everybody worldwide just like bitcoin, paypal etc. It shall have an account page where balance can be viewed, send and receive of yuan.

It is an attempt to make their currency globally available.

https://www.coindesk.com/chinas-digital-currency-will-be-two-tiered-replace-cash-binance
https://qz.com/1710850/chinas-central-bank-could-gain-from-a-digital-yuan-cbdc/

[jootn2kx]

China Creates Currency to Cancel-out Cryptocurrency
The Chinese government is on a mission to keep people dependent on government-controlled currency.
China’s government has now devised a cockamamie scheme where they will use their central bank and commercial banks to distribute a newly created digital fiat currency
in an attempt to trick citizens into believing that they have cryptocurrency all in hopes that the people will use the digital fiat instead of real cryptocurrency and stay government currency dependent.
The fiat digital currency will be totally centralized and the plan is to replace the current currency, the yuan,
with the new digital currency which right now is being referred to as Central Bank Digital Currency (CBDC). The digital currency will be issued to commercial banks via the central bank, and the commercial banks will, in turn, be able to distribute it to the people.

In the end, it won't matter. Not even China can block Bitcoin and other real cryptos from being used. In fact, the development of their own currency, however centralized it may be, might be a good thing, as it will show more people that such a thing exists. After that, finding BTC, ETH, and others will be a simple matter of time.

[whtchocla7e]

In my opinion, the currency that the government controls will not bring strong fluctuations. For me, in this market, I like volatility, and most of us are the same. Besides, no one likes to be controlled, the current digital currency is anonymous, unregulated. So I do not appreciate the money that the government will create!

[TheClownSong]

I think by making its own cryptocurrency, it doesn't mean that the Chinese government wants to turn off the cryptocurrency market. Every government should create cryptocurrency that they can control. The cryptocurrency market will probably be a digital asset market and maybe only projects with good products can survive

[jets567]

In my opinion, the currency that the government controls will not bring strong fluctuations. For me, in this market, I like volatility, and most of us are the same. Besides, no one likes to be controlled, the current digital currency is anonymous, unregulated. So I do not appreciate the money that the government will create!

Of course it will not be highly volatile because China's digital currency is a stablecoin which is designed to minimize the large fluctuations and in my view it would not be a threat to cryptocurrency instead it will be recognized as Tether. If ever it becomes available on the market, the traders will just use it to safeguard the value of their holdings when the market is dumping.

[laskybok]

Cryptocurrency has been in existence for the past ten years, although, there are other new Ines that are just being launched. However, a cryptocurrency cannot just come up one day, irresponsive of how powerful the force behind it, it cannot relegate other, let alone cancelling them out.