China launching its own crypto currency ?

[Juggy777]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

Only citizen's of China will benefit to it and I don't think it can be used outside the country or used for trading. If it can't be used globally then it won't affect the crypto market. Their own cryptocurrency is centralized just like facebook's libra coin so ethereum and bitcoin will still remain the top cryptocurrencies for me.

More info about China's own crypto currency here: https://www.forbes.com/sites/rogerhuang/2019/08/14/chinas-digital-currency-is-unlikely-to-be-a-cryptocurrency/#3fcfdd036a52

Scary times for Chinese citizens. At first they might not realize that with how used they are to platforms such as WeChat and AliPay, but they're definitely going to notice when people are being censored when sending money to recipients the government doesn't like. Another thing is that they can easily analyze your spending behavior to either sell it to third parties or abuse it themselves.

People in China should do everything they can to buy themselves as many Bitcoins as possible locally while physical cash is still a thing. Bitcoin will be the only bit of financial freedom that they have left.

As for the impact on crypto, I think it will be negligible at first, but may prevent future adoption from Chinese citizens if every single mainstream exchange ends up on their blacklist.

China’s crypto currency won’t have any immediate effect on the crypto market, because their crypto will be a centralised one and the Chinese people may even reject this crypto. However in the long run if their government withdraws cash and forces them to use their centralised coins only then crypto market may be effected. @1Referee you’re absolutely correct with your analysis that the Chinese government intends to keep complete tabs where their citizens are spending their money, and this wont bode well for the Chinese citizens.

[ichai]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

It is just a project and everything is still being tested and has not been officially confirmed by the Chinese government. It seems complicated, and managing a currency in the cryptocurrency market is not easy, because there are hundreds of organizations manipulating it.
We need to wait for more information on this news.

[MonsterV]

~snipp

In the past,
large countries considered cryptocurrency as a threat and a shortcut to crime such as money laundering & corruption.

now the trend is different,
at this time, the trend that is being created by the US and China is creating a fully centralized over the world.

IMO, this is not bad, it will instead make the cryptocurrency adopted in bulk.

I understand that crypto has an extraordinary appeal, so China is interested in creating it on its own. But if trend will continue to change from decentralized to centralized, it means we still do not have freedom our currency. If we read why satoshi created bitcoin? namely to give freedom in holding money without government interference.

If all governments adopt crypto but with a centralized system, so it's not much different from fiat. It's just that they change technology into a blockchain. I would feel happy when more crypto was adopted decentralized.

[eaLiTy]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

Since they wanted to have complete control over their population it is not a big surprise that they are coming up with their own centralized coin, i have not seen any articles regarding that but i have an idea what they are coming up with, it is no affect in the market, Venezuela already have their coin Petro, does it have any implication in the market, i seriously do not see any nor do i care about it.

[Ozero]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

If they go ahead with their coin, its likely going to be a stable coin like Facebook's Libra. Its effect on the crypto market is not something that we can understate because its likely going to bring crypto to the mainstream everywhere else in the globe. The Chinese coin is likely going to ride on the success of  WeChat which already is a major payment gateway in China and given that the coin will be state-backed in a closed dictatorship kind of society scale and adoption will be fast. 1 billion people are no joke when they come onboard as users.

There is still very little information about the Chinese CBDC coin, however, most likely, it will be a stable coin. It has been developed by the Chinese government for a long time, but has not yet been tested and requires some degree of refinement. They are trying to launch it faster against the backdrop of talks about the release of the Libra coin, which would directly compete with this Chinese coin.
I think that the Chinese CBDC will have a significant impact on cryptocurrency, since its use is likely to go beyond China.

[Golftech]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

Since they wanted to have complete control over their population it is not a big surprise that they are coming up with their own centralized coin, i have not seen any articles regarding that but i have an idea what they are coming up with, it is no affect in the market, Venezuela already have their coin Petro, does it have any implication in the market, i seriously do not see any nor do i care about it.

It will affect the entire nation of China if they will carry out this crypto coin but since it's a centralized coin it will be use by people who live from the country, though we can also consider the hype that possible to happen with billions of citizens from china who will  understand the concept of this industry, if investment will flow and they consider other crypto coins it will be a good start for Chinese people to go deeper with crypto industry.

[jhongzjhong]

I have a strong doubt that this cryptocurrency that launching by China is a centralized one and under controlled their governments.
Maybe it won't appear in the crypto market and will just be in their country. They always wanted to be the most powerful country in the whole world in all aspects. Also, their government probably has control over their people's gadgets. So the governments are the one who can benefit the most in their own crypto.

[SquallLeonhart]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

All I know is that the market is wide to accommodate everyone, provided that they don’t ban the use of cryptocurrency and impose their own currency on them, most of those 1 billion populations would still want to use bitcoin because of the nature of bitcoin.

China coin can never even be classified as cryptocurrency, I think it is just digital Yuan, and what will that one do for china people other than payment? When it comes to benefits, people are more concerned about the financial benefit of a system to them, which I don't think that Yuan coin will be of. Is it china digital payment that wants to make the price of their holding multiply? So Chinese people will always look for bitcoin even if china had created their own means of payment and even impose it on them.

[yesyes18]

Idwally, Central Bank-issued digital currencies aren't a threat to decentralized digital currencies. The thing is that until they ban digital currencies, whatever the Central Banks will instill will behave in the same manner as the Fiat and hence wouldn't be a competition to the general crypto market. Bans are however issues of concern.

[kennen1113]

I have a strong doubt that this cryptocurrency that launching by China is a centralized one and under controlled their governments.
Maybe it won't appear in the crypto market and will just be in their country. They always wanted to be the most powerful country in the whole world in all aspects. Also, their government probably has control over their people's gadgets. So the governments are the one who can benefit the most in their own crypto.

Of course, the Chinese government will certainly have a way to fully control their cryptocurrency before launch, they won't allow any problem to happen and get out of their control because this is a big country, if the loss of control happens, it will be a disturbing scene. But perhaps the number of people supporting this cryptocurrency is probably not too hig, even for other countries, this is not a good product because China always has the ambition to become the strongest country, sometimes they just make fake products to make money, can't trust their cryptocurrencies

[beerlover]

I wonder if there would be anything different than a stable currency. Like if they do something along the lines of bitcoin or any other altcoin or will they go for something like USDT but for their own currency (yuan I believe).

If they do something like YUANT or something (totally making up the name) then it would be a lot worse because it is basically the government giving away money to foreigners as well, people could potentially use the "made up" coins and buy yuant with it, like have some worthless ICO money they have that all combined makes millions of dollars (not just one person but everyone) and they could buy yuant with it and then sell that for real yuan and sell that for dollars which would hurt the chinese economy a lot. That is why I think they should focus on a real crypto currency instead of a stable one.

[Alert31]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

If ever China open it in crypto market worldwide then i think it will bring an impact to the market because we know China has a biggest population. But we don't know if the effect of it in crypto is good.
If this crypto currency is open only for their country then only their community can benefit and use it. So,if it happen there is no effect to crypto market.

[erikalui]

Every country is thinking of launching their own crypto but none will work as it will be more beneficial within the country rather than internationally as bitcoin has been. Also these cryptos would be highly regulated so they will not be so popular even within the country. It will be no better than fiat in digital form.

[trickyriky]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

A research report from Binance experts said that China’s state digital currency is likely to be a two-tier blockchain system that replaces both banknotes and coins. Additionally, the new digital asset of the country's central bank will be similar to what the organizers of the Libra facebook project offer for users now. Besides, China cryptocurrency can be launched in November already.

[Distinctin]

It will have a good effect in the market because it's still crypto and that means crypto will grow.

They can issue their own, even other countries can follow but bitcoin is unique and will still be the king in the market since it's not influence by the government and it's completely transparent.

IMO, nothing can beat bitcoin because people have already chosen which coin they like to support, although Bitcoin was not the first coin that was created but it was the one that is supported and it has been proven many times that bitcoin is strong as it was declared dead many times and until now it's still here even dominating the market.

[STT]

china is moving towards a new totalitarianism and this appears to be one of the methods.

China already undermines its people via capital controls, they devalue the currency to serve the export economy model which has the benefit of making their citizens labor much cheaper without their involvement in that decision.
  Its not going to be any closer to crypto currency as we know then the Venezuela model which was a joke, without any decentralization or ability for free agents to be involved in production, transmission and fees its purely just a system of digital currency under the puppet control of politics and we already have digital currency systems in most countries.    The vast majority of FIAT for most major currencies is calculated and settled purely digitally without ever being close to physically relating to any value or trade of actual goods, a large part of most trade balance is now is made up by bonds which are no fixed value either but helps to reinforce the current unit value so long as they are held.

  The two measures I know of China making in a substantial way in recent years has been to enter into the agreement of SDR value operated by the IMF for a common currency between major nations.   The other obvious measure by China has been to alter their stance of physical gold reserves, becoming both the worlds largest importer of gold and producer of gold with few exports we can say the command economy of China is amassing large amounts of gold in place of what might be foreign reserves of Dollar or related debt.  
  Other policy notable is Chinese ownership and sponsorship of major infrastructure and assets in many countries.   I'm not sure if the giant take over announced of LSE by Hong Kong is a private deal or a cover for China central government control, unfortunately Hong Kong and all its capitalist wealth is soon to become one of the collective.


China Belt and Roads Initiative - http://www.lse.ac.uk/ideas/Assets/Documents/reports/LSE-IDEAS-China-SEA-BRI.pdf

China knows something none of us do or at least acknowledge which is currency is worthless compared to assets.   They do or will have the power to undermine most western governments and cause massive devaluation of Purchasing power for those nations.

[oaz7t]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

Only citizen's of China will benefit to it and I don't think it can be used outside the country or used for trading. If it can't be used globally then it won't affect the crypto market. Their own cryptocurrency is centralized just like facebook's libra coin so ethereum and bitcoin will still remain the top cryptocurrencies for me.

More info about China's own crypto currency here: https://www.forbes.com/sites/rogerhuang/2019/08/14/chinas-digital-currency-is-unlikely-to-be-a-cryptocurrency/#3fcfdd036a52

That make sense. May be they should have gone for decentralisation off their own currency as it would have made huge difference in the rest of the market. Just imagine that much money being put into blockchain for the development of their own coin can lead to good spikes in the digital world.

However, now that they have chosen the crypto to be made centralised then it will benefit in great way to their mini environment of crypto. This is in regards with security and safety of their currency and may not intend to contribute with the rest of the market.

[Jating]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

They have been talking about it for years. And now they quickly realised that Libra is coming that's why they immediately announce their own crypto back up coins. But are the Chinese willing to invest on it wherein it is totally centralised?

It won't affect crypto that much though, as far as I know this is offered to Chinese only. There is also another looming competition, as tether launches a Yuan pegged stablecoin, https://www.coindesk.com/tether-launches-chinese-yuan-pegged-stablecoin-on-the-ethereum-blockchain.

Of course they don't want to yield control to their population specially when Chinese goes full crypto. That's why they have to make a move today with their own coin.

[audaciousbeing]

China coming with its own crypto currency should not even be a surprise because its something that is not new and there are no way around it because their teeming population are moving towards a digital way of payment and if they didn't create one, it means the citizens would have to look else where which would then defeat all the clampdowns we have seen them embark upon all over the years being a wasted effort. On the effect, it would definitely be wrong to try to downplay the effect its going to have on the entire crypto industry for the following reasons in my opinion:

1. Their population alone is massive to create a spark in any global brand now in the crypto market, it will not go unnoticed

2. The enforcement of the ban on crypto because those who are still defying the rule of not to relate with the popular crypto might have no other reasons to justify their actions since alternative is now being provided.

3. If a clampdown should happen to mining sites which are domiciled within the jurisdiction of China, we might have an issue to contend with.

[TheCoinGrabber]

China is all set to launch its own crypto currency for more than 1 billion of its population how will it effect the crypto market ?

Only citizen's of China will benefit to it and I don't think it can be used outside the country or used for trading. If it can't be used globally then it won't affect the crypto market. Their own cryptocurrency is centralized just like facebook's libra coin so ethereum and bitcoin will still remain the top cryptocurrencies for me.

More info about China's own crypto currency here: https://www.forbes.com/sites/rogerhuang/2019/08/14/chinas-digital-currency-is-unlikely-to-be-a-cryptocurrency/#3fcfdd036a52

Thanks for actually providing the link. I'm just curious though how it would go with this setup, with China having an official crypto that is only usable within its borders and then a separate fiat which it uses for trading with the world.