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Is China on the Verge of Issuing an Official Digital Currency?

Several Central Banks Looking to Issue Digital Currencies

According to a report by the International Monetary Fund (IMF), several central banks in various countries are considering implementing a digital currency.

Uruguay has reportedly launched a central bank digital currency pilot program already, while the Bahamas, China, Sweden, and Ukraine are “on the verge” of testing their systems.

 

China to Launch its Digital Currency

China is reportedly about to offer its first digital currency. This is after five years of extensive research and development.

A report from the China Daily news portal indicates that the central bank digital currency might have been influenced by Facebook's Libra coin.

Yang Dong, the Director of the Research Center of Finance Technology at the Renmin University of China, revealed to China Daily that the announcement of Facebook’s Libra came in handy in motivating the project’s designers to include more non-governmental institutions in the digital currency development process.

Yang said:

"Further testing is needed before officially launching the Chinese CBDC, gaining inspiration from the Libra."

 

CBDC Expected to Have Many Positive Impacts

Shao Fujun, China UnionPay chairman in an interview with China Daily, said:

 “CBDC will have lots of positive impacts, including tracking the money flow in economic activities and supporting making monetary policy."

Evidently, more governments will sooner or later jump on the digital currency bandwagon.

china issuing official digital currency
Shao Fujun. IMAGE SOURCE: Xinhuanet

 

Rwanda’s Central Bank is also Poised to Launch Digital Currency

According to a report from BNN Bloomberg, the central bank plans to use the digital currency to increase transaction efficiency and boost economic growth.

As part of their research process, General Peace Masozera Uwase (Financial Stability Director) mentioned in a recent interview that the National Bank of Rwanda plans to explore use cases of blockchain technology in central banks of other countries. This includes; Canada, Netherlands, and Singapore.

 

Digital Currency Concerns

Uwase warned that there were concerns about how the whole process of digital currency worked and what could happen in case pertinent issues were to arise.

He told Bloomberg:

There are still concerns about how exactly you convert the entire currency into digital form, how to distribute that and how fast can you process those transactions,” Uwase said. “Challenges come in, if technology is down how you deal with such issues? “We will join in once we are ready.”

Cryptocurrency Scam Alert

As the country prepares for its official digital currency, it hasn't lacked its share of crypto scams masquerading as a legit business.

A few months before the National Bank of Rwanda issued an alert on cryptocurrency scams. The NBR alerted citizens of the impending dangers of participating in such investments and went ahead to list several of the known scams operating within the country.

 


About the author:

Jay Jackson is a blockchain enthusiast and a freelance writer at topcryptowriter.com. He works closely with brands (people, businesses and startups) in the crypto sphere. He currently writes Blog posts, Guides, Press releases, ICO reviews, eBooks & Whitepapers. You can find him on LinkedIn.

Disclaimer:

The above references an opinion and is for informational purposes only. Do not take this as personalised financial or investment advice. The views expressed by the author do not necessarily represent the opinion of BitPrime.

Last updated: 24/08/2019

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