Although China does not approve of the spread of cryptocurrencies, the country is ready to offer its own version of virtual cash. The People's Bank of China said that its digital currency can be considered ready after the past five years of work on it. However, you should not expect that it somehow imitates cryptocurrencies. It will use a more complex structure, according to Mu Changchun, deputy head of the payment department.
The system will be based on a two-level division: the People's Bank will control processes from above, and commercial banks - at the bottom level. This will reportedly help serve China's huge economy and population efficiently. In addition, the new currency will not fully rely on blockchain technologies that form the basis of cryptocurrencies.
Mr. Changchun said that the blockchain is not capable of providing the high enough bandwidth needed to implement the currency in retail. Officials have spent years trying to increase China's independence from foreign technology, and this is a logical next step in the economy. Despite statements about readiness, nothing is said yet about when exactly the currency will be ready.
China, however, has a motivation to introduce such a monetary format as early as possible. The authorities are reportedly unhappy that speculators are exchanging ordinary money for virtual cryptocurrency on a significant scale. The new approach to digital currency is designed to increase stability in this area. Not surprisingly, the Chinese government would like to have a system that it can control.
Source: 3dnews.ru