China recently approved the People’s Bank of China to begin building a road map that will lead to the creation of digital yuan. While a lot of people believed Russia to be the first official entry into the cryptocurrency world, this move will establish Chinas dominance in the global cryptocurrency ace.
As we covered in our last article, this move might push China ahead, a move they felt like they were forced to make due to many factors that could put their current economy at stake. China has begun calling all market-oriented stakeholders to work together to develop this new “digital yuan”.
While the future of the cryptomarket is uncertain, especially with the social media giant coming out with a cryptocurrency of their own, crypto users have been wondering the effects this new centralized coin from a government will have on coins like TRON. 60% of the investments flowing into cryptocurrency at the moment is flowing into Bitcoin, as the coin has become even more appealing since the implementation of Lightning network and Segregated Witness has made Bitcoin much more efficient with how the transactions are completed. As most investors seem to be going into Bitcoin, altcoins in general might be in dire straits, as since the climb of Bitcoin on April 1st, they haven’t seen much movement with most HODLers still believing the reign of Altcoin comes after Bitcoin goes up.
While this may be true in the rest of the world, in China what coins are held at higher standards are EOS, followed by Tron. Bitcoin being relegated to 15th place. These rankings come from Chinese government crypto sponsored rankings.
Tron has the attention of the Chinese government’s because it prefers projects keen on addressing scalability. Especially with how well their BitTorrent Speed has been received, this appears to be going well. The token is also as Chinese as crypto can get, thanks to Justin Sun’s efforts. A government-backed digital, therefore could adversely impact the fortunes of TRX.
China has the largest population in the world and interest in cryptocurrency is growing. The sway the Chinese government has over their population could very well make their cryptocurrency be a huge success, as their current largest weakness would be simply if nobody adopts and uses their coin. China, however, has the WeChat network in place to kick off their operations. The Tencent’s social media platform also works as a digital payments network.