People’s Bank of China is Developing its Own Cryptocurrency, while Banning Bitcoin and Other Cryptocurrencies

People’s Bank of China is Developing its Own Cryptocurrency, while Banning Bitcoin and Other Cryptocurrencies

The Chinese government has prohibited the use and exchange of any cryptocurrencies, and terminated all cryptocurrency exchange platform earlier in this September. According to the report of South China Morning Post, the head researcher of People’s Bank of China (PBOC) claimed that the bank is conducting research on the development of China’s own cryptocurrency.

According to Yao Qian, the head of PBOC Digital Currency Research Institute claimed in a forum at Beijing that, “The development of digital economy needs central bank-issued electronic currency more than ever. It’s crucial to speed up the research and issuance.”

Unlike other privately issued and decentralized cryptocurrency, Chinese cryptocurrency will be completely centralised and monitored by the central bank. “What the central bank has in mind is a centralised digital currency among all”, Yao said. “Virtual currency is easier to trace, allowing the central bank to monitor its velocity and the whereabouts of the money and improve its monetary policies accordingly.”

 

This move is similar to what Russia government is doing: the government first tackled all decentralized activities strictly and hence establishes its state-issued cryptocurrency – CryptoRuble.