Crypto Update: China CB Goes Blockchain in 2018?
In this article I will discuss the possibility of China introducing the world's first central bank backed digital cryptocurrency in 2018.
It is starting to look extremely possible that in 2018 China will be the first major country to launch a central bank digital currency (CBDC). If that happens it will most likely correspond to a large-scale blockchain implementation in the retail and logistics industries and mass adoption of cryptocurrencies in Chinese companies.
But what factors could possibly go into this prediction? Let me explain further...
1.) Even though cryptocurrency exchanges were banned from China in September by China, the country is still very much interested in creating a central bank digital currency and blockchain. This can be proven by the government's ramped up research program supporting such an effort.
In Feb. 2016, for example, People's Bank of China (PBOC) president Mr. Zhou Xiaochun admitted during an interview that the Chinese government has been investigating the adoption of CBDC for a long time.
On Dec. 27 of that year, blockchain was written into the "13th Five-Year Plan for National Informatization." The government affirmed the value of blockchain, and it has since risen to the level of our national science and technology strategy.
2.) According to further research it appears China is almost ready to launch the first CBDC. This is supported by the fact that the PBOC has already set up a dedicated digital currency research group in 2014. They have been studying digital currency issuance and business operation frameworks that can support a new blockchain system for years.
3.) In January 2017, China's central bank tested the digital notes exchange platform. This is an extremely advanced system and makes it appear as if China is way ahead of the game when compared to other countries.
According to a paper published in Tsinghua Financial Review, a digital currency was used to exchange notes between commercial banks, including Industrial and Commercial Bank of China, Bank of China, WeBank, Shanghai Pudong Development Bank and Bank of Hangzhou.
In July, the Central Bank Digital Currency Research Institution officially began operating as a separate business unit within PBOC.
If you are familiar with China, this is how things work there as state and corporation have an unclear division between them due to the communist nature of the country. The CBDCR is China's new independent arm for launching digital currencies in the PBOC.
4.) This is a much needed strategic play for China. The Chinese CBDC compliments its Belt and Road Initiative, an integrated upgrade of China's international cooperation with the Eurasian Economic Union, China-Japan-South Korea Free Trade Area and other areas.
5.) There are benefits for China in releasing a CB digital currency because transactions with digital currency are more efficient and convenient. They eliminate third-party reconciliation and the automated implementation reducing payment costs and error rates.
Beyond that fact this will increase chances other countries would pay with RMB in transactions. This in turn will increase liquidity and internationalize the RMB.
There is a lot of evidence supporting China's move towards a Central Bank backed digital currency in 2018. Be ready to move because this my friends if it happens will be a game changer.
Smart money always gets there first so be smart and keep your eyes and ears open here.
What do you guys think about the possibility of the first government backed cryptocurrency in 2018? It this going to happen? Why or why not?
Thanks for reading @techblogger!
Source:
China on a Blockchain? Maybe in 2018 - CoinDesk
Image Source:
CoinDesk
Heard rumors today that the Bank of Israel is working on something similar. If you can't beat them, join them?
Thats just the thought I had about Steem. In fact I think Mark Z. from FB might be pumping our price here... Bring on a new generation of social networking sites!
Rumor is he's working on a coin of his own. Imagine Facebook on a blockchain. Yickes.
I think the Chinese government heads are just ruthlessly efficient enough to the pull the trigger on a move to something like this. If they ever did do that they would be basically conceding their holdings in the dollar, including the US debt they own because that would totally crash both of those values. Intriguing thoughts there, great post, thanks glad you thought of it.
Yes that is true. It could start a war possibly. They will most likely hedge towards cryptocurrency and I'm sure they already have to a large extent. The US debt is so large at most all they can hope for is for interest payments to continue for as long as possible. Paying that debt off is like a human walking on mars without a spacesuit. Not going to happen right?
the world is going blockchain and China would not want to play catch up, look at Dubai and russia have introduced their own coin and a block chain so china is just playing a long with the future of technology
@techblogger
Thank you for sharing this.
China jas shown serious interest in venturing into digital currency 💱.
Infact they have been one of the reasons for price fluctuation on bitcoin.
The question of their building a digit currency is valid and the answer is yes.
They will no doubt create their government approved currency.
However penitent questions will arise :
Will they be trust worthy?
The problem with government initiated block chain technology is centralization. They will be too much power in the hands of the government!
In any case I'm particularly interested in how their currency will make an entrance into the market,
Will there be an ICO?
Or private pre-sale?
As for an ICO, I would not bet on it. Even China' s Stock Exchange is only open to foreign investment on select days, and in limited amounts.
As for the question of the Chinese government being trustworthy, the main reason they have recently put such a clamp down on BitCoin's operations in China is because they have realized the y cannot control it. To put it simply, the CCP is, by their very own open statement in their charter, perpetually engaged in the destruction of any institution not controlled by "The People," meaning them. I see their digital currency being built in as part of the already existing digital exchange infrastructure for their Fiat currency (there are places in Beijing that will not accept RMB through any medium other than WeChat Wallet; cash is unacceptable), on a platform they can lock a user out of for any action deemed "seditious "such as a social media post they dislike).
So no, I would not trust them. I would not respect anyone who does trust them, nor do business with the same.
And for the record, I live in Beijing, and have lived here for five years, lest anyone should make the argument that I'm an "American Propagandist."
highly qualified posts.
but I want to ask your opinion. how do you feel about bitcoin prices in early 2018.
whether progressively or vice versa.
how do you think and the opinions of btc users around the world?
Great post, please continue
It seems so attractive step by china but I don't get it. I mean will they charge for some transactions? Will they make some rules for this. I mean crypto currency beauty is , no 3rd party will come in between a transaction between two ??
I do not think the Chinese government is considering, many similar countries are studying blockchain. This policy of China move will probably drive the growth of the crypto market even more.
Yes ..bit coin price will be raise very high in 2018...actually all are thing about the price down ..but the fact is ij crypto field every year december last month trading could be done very low and prices are also decreses ...but it is limited to 10 days only ...it will raise high definatly..the 2018 will be a crypto and ripple year i hope the both prices are raise very high...thank you for sharing the post with us......
Happy new year to you and your family members....enjoi the day....
A very beautiful picture and a beautiful publication my friend
I wish you a happy new year