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People’s Bank of China move forward to issue digital currency to replace RMB by year-end

The People’s Bank of China (PBOC) is working on a plan to issue state-sponsored virtual currencies by the end of 2019. Shanghai Securities News, china’s state-run Xinhua news agency, recently reported that Mu Changchun, deputy director of the PBOC settlement division, made the announcement at an undisclosed line-in-line planning meeting.

For the past five years or so, China has been developing a development plan to issue a statutory digital currency (virtual currency) to replace the renminbi (RMB).

China moves forward with a plan to issue a digital currency of yuan by the end of the year
It is no secret that China is developing a statutory digital currency. There have been several such remarks from the PBOC and other stakeholders, and interest in other countries has increased.

In April 2019, Donald Tapscott, chairman of the Blockchain Research Institute, a Canadian blockchain research institute, In response to a question from Bloomberg, he said, “In China, you won’t be able to use Bitcoin in 20 years. The Chinese people will use the renminbi, and the People’s Bank of China will turn the yuan into a digital currency so that only the renminbi will be the only virtual currency itself.”

This plan is not 20 years away. It’s going to be a problem that’s just around the corner.

China contrasts blockchain with cryptocurrency in binary conflict
During a recent visit to Southeast Asia, President Xi Jinping learned that he believed blockchain technology was one of the two most important technologies for China’s future. At that time, President Xi Jinping seemed to feel that we were making a fool of us. Why was bitcoin exchange banned? “If something is wrong, He said.

Blockchain researchers explain that this is the idea of a “binary conflict” in China. It is a way of thinking that thinks of one concept as two concepts that contradict each other and conflict with each other. Based on this, the Chinese government is a way of dealing severely with cryptocurrencies on the one hand and allowing blockchain technology on the other. “The Chinese government is serious about treating cryptocurrencies severely,” Tapscott said.

Central Bank Digital Currency (CBDC) Issuance Has A Major Impact on the World
Andrew Holden, an economist at the Bank of England, the central bank of the United Kingdom, said that instead of introducing negative interest rates to cope with the economic stagnation, Another solution is to publish digital currencies. “Virtual currencies have not yet experienced a global recession, but it’s already a matter of time,” he warns.

What about China? President Xi Jinping said a year ago that “a new generation of technologies such as artificial intelligence, mobile communications, the Internet of Things, and blockchain is accelerating innovative applications,” and has made aggressive promotion a national policy.

Don Weinland of the Financial Times believes that no central bank is serious about issuing the Central Bank Digital Currency (CBDC) at this time. Rather, he pointed out that there was strong resistance from the government and the Bank for International Settlements.

Nevertheless, if China dares to act toward issuing its own statutory digital currency, it must say that the impact on the world will be enormous.

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