Very soon China is going to make its own Bitcoin currency though many other countries are still trying to prevent the existence of its.
According to Reuters, The Chinese Bank will take two particular approaches for the project.
The head of the digital currency research of China, Mu Changchun, said recently that they would make the digital currency to the commercial banks. After that other institutions would then send it back to the public.
Mu added, the central bank was in a ‘technology neutral’ position, but he anticipated that if the ‘front runners’ took the lead, then the technology used would be adopted by other parties.
‘Given that the digital currency project is designed to replace existing banknotes and coins, holders of the currency will not receive interest payments. That means there will be no implications for monetary policy and inflation,’ Mu said.
This project has some similar features with the Facebook Libra currency and it seems China wants to monitor the flow of the money very closely.
The major purpose of this project is to protect capital limits and worldwide payment system.