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China Eyes A State-Owned Cryptocurrency

What happened

Early September, China banned ICOs and cryptocurrencies. A month later, Chinese official Yao Qian reportedly called for a state-owned digital currency.

That’s weird. Isn’t it against the law?

Looks like it’s not. Banning ICOs and bitcoins under the flags of protecting people from scam risks, Chinese government was in fact clearing up the space for a state-issued alternative.

What now?

Now Yao Qian – who is the Director of the Digital Currency Research Institute under the People’s Bank of China – claims that a state digital currency will help to stabilize domestic fiat. Sure, that could happen. But not for long – knowing the Chinese market, cryptocurrency has all chances to completely replace yuan.

What can we learn from it

  • China will have not only its own internet, but its own digital currency. And the global cryptomarket loses 1.3B users.
  • Chinese approach is an example of an concept turnaround – we all thought that cryptocurrencies were meant to decentralize the world and economy…
  • The time of fiat is ending – and governments have to create new formats for interaction.
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