China aims to kick open the doors to cryptocurrency by creating its own digital currency.
China previously announced interest in the creation of its own digital currency in a seminar sponsored by People’s Bank of China (PBoC) partnered with Citibank and Deloitte Digital Currency Expert. The massive event was held in Beijing last January 20.
Attended by People’s Bank of China Governor Zhou Xiaochuan, People’s Bank Vice President Fan Yifei Chair, relevant research institutions, major financial institutions, and advisory bodies of experts, discussions were focused primarily on the overall framework of digital currencies. The panel also discussed how digital currencies would force the evolution of National Reserve Currencies, and the benefits and pitfalls of encryption.
China is the bastion of cryptocurrenciesand the top driving forceof the cyptocurrency industry. Reports in 2015 have show trade volume in China caused the value of Bitcoin to rise at an incredible rate, sky rocketing the value of Bitcoin to more than $500 at one point.
The average Chinese investor quickly saw a decentralized currency not manipulated by the People Bank of China as a wonderful thing and acted on it.
It was pointed out in the seminar that with the continued development of information technology with the break through innovation of the block chain technology and digital currency, have brought new opportunities – as well as challenges.
According to the People’s Bank of China, they have centered the decision in creating their own digital currency primarily to do away with the cost of fiat circulation and reduce transaction costs promoting settlement efficiency for all stakeholders; and secure the country and its people’s interest against virtual criminal acts such as money laundering, tax evasion and forgery.
With the continued efforts being done by China, it is implied that they are very positive with the future of digital money, and especially in the economic boost and efficiencies that the block chain technology brings.
The world continues to observe and look out for further developments in this matter and on how China will continue to break borders of the digital industry.