China is Taking it to the Next Level with a Domestic Cryptocurrency
It seems that the cryptocurrency world will continue growing and getting the attention it deserves. When least expected, you find new players joining the cryptocurrency race every now and then. It is evident that cryptocurrency is the way to go. And that can be seen from China’s new move to prepare to launch its first domestic cryptocurrency. It is going to be big.
What about it?
China just announced a new move to roll out its first domestic digital currency, which will also be the first one in the world. And as a result, it is a move that has attracted many financial industries globally irrespective of few details.
According to officials from the Chinese central bank, the launch of the cryptocurrency through Digital Currency Electronic Payment, also known as DCEP is going to ignite a serious race between commercial banks trying to offer the best crypto services. The DCEP program, just like Bitcoin and Facebook, suggested digital currency, Libra, it will be secured and powered by blockchain technology.
According to the available information, the DCEP project will work in a two-phase manner where People’s Bank of China will issue the commercial banks with the cryptocurrency and then they will distribute it to the public.
Mu Changchun, who is the central bank’s head of digital currency research, said that according to their study, the rolling out of the currency will be like a horse race. This is whereby the frontrunner will be anyone who can provide the most efficient services to the public. Hence, will survive the race. He also thinks that in case one of the commercial banks leads, then the rest will follow.
It is projected that the new digital currency will play a major role in allowing better regulation of Chinese monetary flow. It will protect the country and its capital borders from the illegal flow of cash.
Can Facebook’s Libra catch a break?
This comes as the launch of the Facebook Libra project has been stalled by the EU since its announcement in June, as there are fears that the private digital currency will pose a great risk to other financial sectors. As a result, the EU has been urging the European Central Bank through a drafted document to issue a public cryptocurrency and come up with an approach to regulate the new digital monetary form.
Note that regulators had initially ignored stablecoins, citing small size, but the announcement of Facebook’s Libra – which will be a cryptocurrency with the potential of having billions of users sparked a global push for private currencies to be regulated within the public financial markets.
As China prepares to launch the first public cryptocurrency, which will be domestic for their own country, there are still more strings to be pulled concerning the digital money form. More players are coming up with suggestions and interests in how the digital currency can be regulated, especially in the private sector.
This is one of the reasons why Facebook’s Libra program launch has stalled since its announcement in June. Some of the threats feared in the EU document concerning private currency include cybersecurity, taxation, money laundering, and the functioning of the entire system. The draft document offered by the EU is, however, yet to be discussed by finance ministers for further decisions.
Dor is a cryptocurrency expert, trader and journalist with an extensive experience of covering everything related to the burgeoning industry. experience is backed up by working in top blockchain related companies