China's Virtual Currency Can Be Used Soon

China’s Virtual Currency Can Be Used Soon

China's Virtual Currency Can Be Used Soon


Although the majority of Chinese citizens are not yet familiar with the use of cryptocurrency or virtual currencies, the Bamboo Curtain Country is preparing to introduce their own form of virtual currency.

The Bank of China said, their digital currencies are ready to be used soon. It took five years for China to develop this currency.

Bank of China Deputy Chief of Payment Mu Changchun said, this virtual currency will not mimic cryptocurrency in general, but instead uses a more complex structure.

Quoted from Engadget, Monday (12/08/2019), this currency will later depend on a split of two levels, with the Bank of China at the top level and other commercial banks at the bottom. This was done to help deal with the size of the population and the economic potential of China.

‘This currency will also not fully depend on the blockchain that forms the backbone of cryptocurrency. It cannot provide the results needed for retailing,’ Changchun said.

But it was not stated when this currency was ready to be used. Interestingly, China does have its own motivation to launch this monetary format faster. The country believes cryptocurrency creates chaos, with speculators selling regular currencies and buying virtual types. Therefore, the new approach that China will adopt is expected to create virtual currency stability.

Nor is it surprising that the Chinese government wants its digital currency system to be controlled. Chinese policymakers spend years to increase China’s independence from dependence on foreign technology.