- Investopia.com: Chinese Government is Developing its Own Cryptocurrency
Cryptocurrency advocates might have guessed that it was only a matter of time before a national bank would develop its own cryptocurrency. Now, it appears that the People’s Bank of China is doing just that, putting China in line to be the first country in the world to develop and run its own national digital currency. Neowin reports that the earliest tests have involved prototype transactions between the new digital currency and some of China’s own commercial banks.
There are numerous reasons China may be interested in developing a national digital currency. First, there are millions of Chinese citizens who lack easy access to standard bank services as a result of infrastructure issues throughout parts of the country. Beyond that, cross-border payments are typically charged heavily, and a digital currency could help to alleviate some of the fees for Chinese citizens. Even more broadly, it’s possible that a national cryptocurrency would help to strengthen the dominant Communist Party of China (CPC). Blockchain transactions are easily traceable, allowing for an easier time finding and eliminating corruption. Further, with digital currency ledgers it is possible to analyze data and draw economic insights in real time. This would certainly help the government in the development of its broad plans and strategies.