Connect with us

Blockchain

China Looking into Blockchain State Currency Renminbi

Saad Ullah

Published

on

China's GDP Growth: Investing

According to the Executive Chairman of Blockchain Research Institute, the Chinese are considering the possibility of converting their national currency, the Renminbi (RMB) into a state backed cryptocurrency.

Blockchain Government

In an interview with Bloomberg on April 17th, Donald Tapscott said that RMB will certainly be converted in to a cryptocurrency. He informed that he recently held a meeting with the Chinese Communist Party Vice Chairman. The Vice Chairman passed on the views of the Chinese President, Xi Jinping, who believes blockchain will play one of the most important roles in the country’s future.

This comes at a time when the Chinese authorities are clamping down hard on cryptocurrencies and even blockchain. Yet, according to Donald, this will actually have a positive effect on the Chinese currency conversion into crypto. With one of the largest crypto market in the world, the conversion of RMB in the crypto digital form will give locals a cryptocurrency that will be accepted by every individual and merchant, making it the most practical of all in the country.

Speaking on the crypto exchange and possible mining ban, he said, “It’s not really necessary to do that [the ban on exchanges and crypto mining] because in 20 years we are not going to be using bitcoin in China. Chinese people will use the RMB, only the RMB will become a cryptocurrency. The central bank of China will turn it into a digital currency

Donald also voiced his opinion that although crypto exchanges are banned currently, there will come a time when decentralized exchanges will rise again. As and when RMB becomes a cryptocurrency, the most transparent and efficient way to trade would be through decentralized exchanges. This will also see the rise of crypto exchanges that will deal in digitized securities.

Tightening Noose on Cryptocurrency

Chinese authorities have banned crypto exchanges and ICOs in the past. The reason has been cited as an extreme speculative market where people’s assets are at extremely high risk. The next step in the process has been a consideration on the ban on crypto mining. The National Development and Reform Commission has included this sector in its list of industries and operations that it says should be stopped because “[Crypto mining] lacked safe production conditions, seriously wasted resources, polluted the environment,”

The ban would seriously hamper global mining operations since the Chinese market has a significant role play. Bitmain, the largest Bitcoin mining firm in the world, has 11 different mining farms in China. The heavy investment in the country is due to its cheap electrical power that leads to profit in a very energy intensive industry.

The Chinese authorities have been bringing in new laws to regulate the blockchain industry. In January, it introduced a new anti-anonymity regulation, requiring all blockchain companies to register with the Cyberspace Administration of China.

Cryptocurrency4 days ago

The Path to Crypto Trading Starts With Knowledge: A Brief Guide to Crypto Trading

Markets5 days ago

By 2025, Wearable Artificial Intelligence (AI) Market to see 30%+ growth to hit US$180 billion

Blockchain2 weeks ago

Starbucks Uses Microsoft Azure Blockchain for Transparent Coffee Sourcing

Blockchain2 weeks ago

PepsiCo Trials Blockchain Advertisment, Boosts Supply Chain Efficiency by 28%

Blockchain2 weeks ago

IBM Helps Netherland Against Bicycle Theft Through Blockchain

Blockchain2 weeks ago

Satoshi Nakamoto Live Unveiling on 14th May? This Site Says So

Blockchain2 weeks ago

Facebook Seeks USD 1 Billion in Investments for its Stable Coin, Talks With Visa, MasterCard

Blockchain2 weeks ago

New Washington State Bill Recognizes Legality of Blockchain Data

Blockchain2 weeks ago

FedEx CIO Believes Blockchain Will Become “Essential” for Businesses

Exodus
Blockchain3 weeks ago

HTC Will Launch Blockchain Smart Phone Exodus’ Successor This Year

Blockchain3 weeks ago

Jaguar Land Rover to Reward Car Owners With Iota for Data Sharing

Blockchain3 weeks ago

Japanese Premiere Wants a Cryptocurrency Governance Manual

Banking3 weeks ago

JPMorgan Flexes its Blockchain Wings As It Plans to Widen Use of IIN

Banking3 weeks ago

Cross Border Payments Through Ripple By Saudi British Bank (SABB)

Blockchain3 weeks ago

Philip Morris Wants to Use Blockchain for Validating Tax Stamps

Blockchain3 weeks ago

Nike Files Patent for Term “Cryptokicks” in U.S.

Blockchain3 weeks ago

Brazilian Confectionery Firm Roma Wins Patent for Bitcoin, Will Manufacture Chocolate Coins

Trading News3 weeks ago

Disney Interested in Buying Nexon, Might End Up Owning Bitstamp and Korbit Exchanges

Blockchain3 weeks ago

Anonymous Source Says Samsung Building Own Blockchian, Samsung Coin

Banking3 weeks ago

French Societe Generale Group Issued $112 million Worth Cover Bonds on Ethereum Blockchain

Like us on Facebook

The Trending Posts

Pin It on Pinterest

Share This