china cryptocurrency

China Moving Forward to Adopt State-Backed Crypto

It will, according to our sources, look very different from bitcoin as well as other known public Cryptocurrencies.

People’s Bank of China Vice-Governor Fan Yifei outlined the bank’s vision for its central bank digital currency.

Fan Yifei then made clear that the it’s purpose is to replace physical currency, and thus the central bank expects to exercise a similar level of centralized control over virtual currency as it does over plain hard cash.

He said that the main purpose of the endeavor, in all candor, was to  “curb public demand for privately-created cryptocurrencies“. He then went on to say;

Fan Yifei further posited that transaction histories will not be accessible to the general public, and the currency will have what he deemed “controllable anonymity,” apparently so that the central bank can stop money-laundering as well as terrorism.

“Personal info and privacy are to be disclosed if no third-party is truly anonymous, however crimes such as tax evasion and money-laundering are encouraged if perpetual third-party anonymity is allowed in this instance. Therefore, in order to have a balance, we must achieve controllable anonymity, thus disclosing the transaction data only to the third party of the central bank,” he went on to say.

Interestingly, the central banker also stated on record that it is unlikely that the network will support smart-contracts due to the fact that this functionality would alter the nature of the currency which is to serve as digital cash.

Olé Crypto,

CBNN

 

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