China’s Central Bank Prepares To Launch Crypto For Payments In 2019
It’s been recently reported that China is becoming more open to crypto and Bitcoin these days.
During a brand new interview with CNBC, Jeremy Allaire, co-founder of Circle, addressed the reason for which the developments in China are showing that the country’s anti-crypto position seems to be “softening.”
“Recently, a major Chinese court defended that Bitcoin is in fact legal property in China, which was significant. We’ve seen one of the very largest commercial banks, Bank of China, start to do proactive information marketing about the benefits of Bitcoin, the risks of Bitcoin, but more broadly its role in the world,” he said.
People’s Bank of China (PBOC) to launch a state-backed crypto
Now, it’s just been just reported that the People’s Bank of China (PBOC) is planning to launch a state-backed cryptocurrency by the end of the year.
The Daily Hodl reports that Shanghai Securities News revealed that the upcoming cryptocurrency was announced today in a closed-door PBOC planning session, the third China Financial Forum of 40 People.
The upcoming digital asset has been in the works for five years
Mu Changchun who is the deputy director of the PBOC payment and settlement division said the future crypto has been in development for the past five years.
Mu Changchun said the new digital currency/electronic payment (DC/EP) would be “ledger agnostic.”
It will also be designed for small-scale retail and high-frequency business scenarios.
The Daily Hodl cites a report which highlights that “He said that the issuance of digital currency in a big country such as China, using a pure blockchain architecture, could not achieve the high concurrency performance required by retail.”
The official notes continue and state that “Therefore, it was finally decided that the People’s Bank should maintain technical neutrality and not presuppose technical routes, that is, not necessarily rely on a certain technical route.”
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Eduard Watson Author
An experienced finance writer for more than 10 years, active industry watcher, and gadget enthusiast.