JUST IN: Chinese Central Bank to Launch Digital Currency Called "DCEP"

[serjent05]

Now that Chinese Government is boldly showing their development in issuing the world’s first state-backed digital currency, will other countries follow the same path? What could be its implications to Bitcoin and cryptocurrencies?

It is possible but I think they will wait for a while and see if the Chinese government will be successful in implementing a new kind of currency (centralized cryptocurrency) in their country.  Most of the country attitude towards new technology is wait and see until someone adopt, implement and become successful befre they decide about it.  So for now China have bold claim to launch cryptocurrency, if they are successful we can see several countries following their steps.

The implication of this kind of bold action to Bitcoin is.. it promotes Bitcoin further.  Being the first decentralized cryptocurrency, many who are on the side watching how the government will react on Bitcoin will sure convinced that Bitcoin is not a joke and will eventually endulge themselves into Bitcoins.

[smyslov]

While the PBoC has yet to confirm the launch of "DCEP," China's finance tsar Huang Qifan says that the central bank has been studying it for almost six years

Huang Qifan, executive vice president of the China International Economic Exchange Centre, has confirmed that the People's Bank of China plans to roll out its own digital currency, which will be called "DCEP" (digital currency electronic payment). 

China Finance 40 Forum (CF40), the organization that focuses on finance policy research and academic exchange, published a video that features an excerpt from Qifan's speech during the inaugural Bund Summit that is taking place from Oct. 27 till Oct. 29.

Qifan reveals that China has been working on the project for about five or six years. After the launch of the DCEP coin, the PBoC will become the very first central bank in the world to issue its own cryptocurrency.

Tongues have been waggling about the state-backed Chinese digital currency for quite a while. As reported by U.Today, it could pose a serious threat to AliPay and WeChat Pay.

Latter, it seemed like the "China Coin" was temporarily shelved -- a source close to the Chinese Communist Party revealed that the cryptocurrency would not be launched anytime soon.

However, President Xi Jinping's embracement of the Blockchain technology has put China at the forefront of the crypto conversation once again. A senior Chinese official also opined that Blockchain needed "special attention" after Xi's comments.

At this point, China is poised to become a leading crypto force despite formally opposing it. Bitcoin remains banned in China despite the fact that local miners are responsible for 70 percent of its hash rate. 

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Now that Chinese Government is boldly showing their development in issuing the world’s first state-backed digital currency, will other countries follow the same path? What could be its implications to Bitcoin and cryptocurrencies?

They have been studying it for 5 to 6 years while they restrict Bitcoin, what is this some sort of philosophy about an art of war, they do not like Bitcoin yet at the same time they are using this technology to create one for them, they are really good at doing this, after they revealed their intention after five years that they are going to embrace this technology, it's about time that, they now throw full support to Bitcoin.

[Eclipse26]

It's the start since the president of China praised blockchain technology. Obviously the next step for China is to create their own digital currency. They have seen the benefits from blockchain and of course thet wouldn't adopt bitcoin since it is decentralized so if they want the same, they will make their own where thet can control and regulate it.
We've been anticipating it any time sooner. But I am more looking forward how it affects bitcoin and if it will be successful

 

[alexsandria]

China have been studying and developing their own cryptocurrency while banning Bitcoin. They really don't wanna be in behind in Bitcoin huh. That is totally understable specially Chinese men are competitive when it comes to businesses. I am just wondering when it comes to market, are they going to force their citizen to use their crypto despite of it price in market?

[coin-investor]

This is good for the whole ecosystem, so if they are going to launch their own coin and there is news that it's going to be an alternative to yuan, they are going to introduce this to all their citizens, that's over a billion of people that they are going to introduce to how Cryptocurrency works, if one Chinese do not know about Cryptocurrency and he is introduced here, it's likely that he is also going to look for other coins and get introduced to Bitcoin.

[7788bitcoin]

They have been studying it for 5 to 6 years while they restrict Bitcoin, what is this some sort of philosophy about an art of war, they do not like Bitcoin yet at the same time they are using this technology to create one for them, they are really good at doing this, after they revealed their intention after five years that they are going to embrace this technology, it's about time that, they now throw full support to Bitcoin.

Bitcoin as a currency and blockchain has to be taken as two different technological innovations and the Chinese government is not planning to accept the currency aspect of the technology but they are taking the blockchain aspect and they will be creating their own centralized currency on top of the blockchain and they will not allow a competitor like bitcoin to be traded in Chinese exchanges.

[Apened]

Im. Reply to the OP, i don't think that China is working on it within the past 6 years in my opinion. Somehow it might ne true, i'm just neutral here and if ever DCEP is their new digital currency i'm sure those countries that knows cryptocurrency will soon make their own digital currency to be specifically use in that particular country.

[Oneandpure]

6 years... Damn, I can't believe they've been looking at blockchain and cryptocurrencies since late 2013, I don't believe they got interested in crypto-currencies since fairly early on, before all the ICO's and bull runs.

It's pretty solid proof that China is completely adopting this new cryptocurrency technology then, they have been very lax with crypto-currency in recent years and it looks like they want to develop an ecosystem that could possibly replace fiat, and their "DCEP" being at the top of it.

I can't wait for it to launch! Countries are definitely going to follow suit with this now.

I confused with China government where last three days they have made announce for listing and adopting bitcoin as legal transaction payment where announce by China president, but last day I got news correct or not with China announce for banned bitcoin as transaction and investment assets, will China playing with bitcoin issues and get profit with bitcoin moment with lower and higher price?

[TRONTON]

I confused with China government where last three days they have made announce for listing and adopting bitcoin as legal transaction payment where announce by China president, but last day I got news correct or not with China announce for banned bitcoin as transaction and investment assets, will China playing with bitcoin issues and get profit with bitcoin moment with lower and higher price?

China's latest statement is not for bitcoin, but they focus on blockchain technology and their own cryptocurrency, this is more analogous to: China knows they cannot block bitcoin in their country, and they take decisive steps to defend the value of the yuan from crypto activity in a manner thorough. They wrap it still in the form of a bitcoin ban corridor as a form of prevention, they continue to prepare the appropriate pattern.

[Murat]

Do you realize that China has been linked with this system for a long time, amazing, now they have come to the point and Blockchain is the main thing for them in recent time, so they are going to create an own digital currency, I think this spet is really fruitful for the whole economic system, Now another country will come to this stage and in this way, this system will get improved and reliable on the whole world, so it's clear that China is in the full swing towards blockchain system, and it's a huge positive impact over the whole globe because all over the world, people will see a government's new step regarding cryptocurrency.

[Kevondo]

6 years... Damn, I can't believe they've been looking at blockchain and cryptocurrencies since late 2013, I don't believe they got interested in crypto-currencies since fairly early on, before all the ICO's and bull runs.

It's pretty solid proof that China is completely adopting this new cryptocurrency technology then, they have been very lax with crypto-currency in recent years and it looks like they want to develop an ecosystem that could possibly replace fiat, and their "DCEP" being at the top of it.

I can't wait for it to launch! Countries are definitely going to follow suit with this now.

I confused with China government where last three days they have made announce for listing and adopting bitcoin as legal transaction payment where announce by China president, but last day I got news correct or not with China announce for banned bitcoin as transaction and investment assets, will China playing with bitcoin issues and get profit with bitcoin moment with lower and higher price?

First of all, china understands the true power of bitcoin and blockchain technology. Secondly, it was blockchain that has been recently praised by the Chinese president and this resulted in an increase in the value of bitcoin. The central bank of china is working on its own digital currency. The most important thing that you need to know is, china wished and tried to take control of bitcoin but failed.

[tambok]

6 years... Damn, I can't believe they've been looking at blockchain and cryptocurrencies since late 2013, I don't believe they got interested in crypto-currencies since fairly early on, before all the ICO's and bull runs.

It's pretty solid proof that China is completely adopting this new cryptocurrency technology then, they have been very lax with crypto-currency in recent years and it looks like they want to develop an ecosystem that could possibly replace fiat, and their "DCEP" being at the top of it.

I can't wait for it to launch! Countries are definitely going to follow suit with this now.

I confused with China government where last three days they have made announce for listing and adopting bitcoin as legal transaction payment where announce by China president, but last day I got news correct or not with China announce for banned bitcoin as transaction and investment assets, will China playing with bitcoin issues and get profit with bitcoin moment with lower and higher price?

First of all, china understands the true power of bitcoin and blockchain technology. Secondly, it was blockchain that has been recently praised by the Chinese president and this resulted in an increase in the value of bitcoin. The central bank of china is working on its own digital currency. The most important thing that you need to know is, china wished and tried to take control of bitcoin but failed.

China has been so competitive in all aspect, they really want to be the number in everything, they like Bitcoin, they love the idea of blockchain but what they can't accept is that USA has control over it and we all know that USA is their biggest rivalry. So, instead they develop their own crypto for their own benefit.

[wxa7115]

This is an old news already. China has always been mumbling about creating its own cryptocurrency. But until now, this is still a plan and there is no concrete step yet that has been taken toward the actual creation of this state-sponsored digital currency. In fact, some analysts in the crypto field are saying that it will take many years before china will finally release their digital yuan. This news is going out in the open once again because of the announcement of the president.

Unlike many projects that we see in the market a government cannot really rush the creation of its own cryptocurrency, as you say it is probably going to take them a few years before we get to see what the Chinese government has developed and the characteristics of their coin, but if the coin they create is as restrictive as I believe it will be then no investor is going to want to hold those kind of coins.

It seems that governments are unable to grasp that the success of bitcoin comes from the freedom it gives to the people, we are not going to use a cryptocurrency just because it is approved by any government, we will use a cryptocurrency because it benefits us and not them.

[Oneandpure]

6 years... Damn, I can't believe they've been looking at blockchain and cryptocurrencies since late 2013, I don't believe they got interested in crypto-currencies since fairly early on, before all the ICO's and bull runs.

It's pretty solid proof that China is completely adopting this new cryptocurrency technology then, they have been very lax with crypto-currency in recent years and it looks like they want to develop an ecosystem that could possibly replace fiat, and their "DCEP" being at the top of it.

I can't wait for it to launch! Countries are definitely going to follow suit with this now.

I confused with China government where last three days they have made announce for listing and adopting bitcoin as legal transaction payment where announce by China president, but last day I got news correct or not with China announce for banned bitcoin as transaction and investment assets, will China playing with bitcoin issues and get profit with bitcoin moment with lower and higher price?

First of all, china understands the true power of bitcoin and blockchain technology. Secondly, it was blockchain that has been recently praised by the Chinese president and this resulted in an increase in the value of bitcoin. The central bank of china is working on its own digital currency. The most important thing that you need to know is, china wished and tried to take control of bitcoin but failed.

China has been so competitive in all aspect, they really want to be the number in everything, they like Bitcoin, they love the idea of blockchain but what they can't accept is that USA has control over it and we all know that USA is their biggest rivalry. So, instead they develop their own crypto for their own benefit.

China become most competitive country how to increase their economic digital currency, they are looking many way how to make their country on the top with giving space for bitcoin and altcoin legal currency payment, after announce by China president now they have adopt new coin for listing to their public, not only China citizen invest with new china coin but many investor in the world will invest there.

[13abyknight]

Im. Reply to the OP, i don't think that China is working on it within the past 6 years in my opinion.

Given the crypto scene began to grow earlier in the decade and also the country here is China, it could possibly be a case of a team studying crypto over the years and giving the government inputs on how they could use it. A big factor here would be the currency getting tied up with the social credit system in China which is known to involve every citizen of the country and again, a leverage to monitor the entirety of the nation's (partial?) economy.

[Mometaskers]

I wonder how they will implement this if they still have their fiat. I'm assuming it can only be bought using their fiat so that eventually DCEP can replace it.

I'm not thrilled. If China succeeds in doing that, other governments could follow suit.

A government controlled "digital" currency is centralized and not even close to a open, decentralized technology like Bitcoin. One of the main concerns with a "digital" currency in China is the fact that China would ban all other Crypto currencies to force their own citizens to use their own centralized currency.

I think that's pretty much the plan. Completely phase out paper money for this crypto. Together with the extensive surveillance and social credit, the government gains near complete control of people.

[exstasie]

I wonder how they will implement this if they still have their fiat. I'm assuming it can only be bought using their fiat so that eventually DCEP can replace it.

I'm not thrilled. If China succeeds in doing that, other governments could follow suit.

A government controlled "digital" currency is centralized and not even close to a open, decentralized technology like Bitcoin. One of the main concerns with a "digital" currency in China is the fact that China would ban all other Crypto currencies to force their own citizens to use their own centralized currency.

I think that's pretty much the plan. Completely phase out paper money for this crypto. Together with the extensive surveillance and social credit, the government gains near complete control of people.

Exactly, hence all the "blockchain not Bitcoin" language. DCEP will give them much more control over their currency than traditional CNY ever could. That includes cutting off access to crypto exchanges and other capital control measures.......

[Google+]

I think all developing countries that can receive a lot of the technology created should be able to follow what the Chinese government is doing because basically blockchain and bitcoin technology can be used for many developments that can make the country more advanced and more developed.

[CryptoBry]

Now that Chinese Government is boldly showing their development in issuing the world’s first state-backed digital currency, will other countries follow the same path? What could be its implications to Bitcoin and cryptocurrencies?

The introduction of DCEP by China can mark a new timeline in the history of cryptocurrency though many will surely question this latest addition to the roster because definitely this is a state-sponsored and controlled digital currency. This is not actually the first as we already have the Petro by the government of Venezuela which failed to make a big fire and a noticeable splash in the global market. I am sure that before coming to this launch, China bureaucrats planned well for the success of this digital asset and they can easily command all the resources available on their hands to make sure that the whole world notices.

So how will this directly and indirectly affect Bitcoin? I am sure we are already speculating whether DCEP can be positive or negative to Bitcoin. In case, this digital currency can also be available in the normal cryptocurrency exchanges, this there is a possibility that this will in fact be helping Bitcoin and vice versa. There is really a huge market all waiting to tap in the whole of China (as well as millions of Chinese overseas) for cryptocurrency but its development is very hampered with the decision of the government in 2017. Now, am hoping that the China government will be using this platform as a pretext to open up the country for Bitcoin.

[karanggatak]

whereas before the Chinese government banned the use of bitcoin. but now it will instead make its own crypo currency. maybe China has realized that cryptocurrency and blockchain are new breakthroughs in the financial system and technology. and many benefits to be gained when we can apply blockchain and crypto technology well. we can reduce the use of fiat money. and in my opinion the presence of DCEP coins is also to rival facebook libra coins. because both are included in the stable coin. and I don't think the presence of this DCEP coin will have an impact on the price of bitcoin.