China Planning to Become First Country to Launch Digital Currency


Keyu Jin is a professor at the London School of Economics. She said, “There’s a consensus around the world among central bank governors and governments at large that they want to have control of money and money supply.”

Chinese officials have not hidden their disapproval of Facebook’s Libra. They have called it a threat to the sovereignty of China and other developing economies. China claims that digital currencies should only be provided by governments or central banks.

Mu Changchun is the head of the Chinese central bank’s digital currency research center. He has suggested that the new currency should be made available through commercial banks, just as physical money is.

The digital currency will follow models similar to systems such as Apple Pay and the Chinese payment system Alipay. These require a commercial bank to put money into a digital wallet that can be downloaded onto a smartphone.

Unlike physical money, however, a tracking system could follow the digital currency’s movements from one person to another.

Mu said the digital currency would strike a balance between anonymous payments and “classified supervision.” He said the goal is to prevent illegal financial activities, with officials able to watch for such activity by studying huge amounts of information.

So far, there has been limited public reaction in China, a country already used to weak privacy protections and government control. But people on social media sites such as Weibo have expressed a mix of feelings. Some say a digital currency could prevent corruption. But others are concerned. One user asked: “What will happen to my freedom to build wealth, my secrets and safety?”

Huang Qigan is a vice chairman of the China Center for International Economic Exchange research group. He said the People’s Bank of China has been studying digital currency for five or six years. He believes it is ready to be put into use.
“China will likely be the first country in the world to issue sovereign digital currency,” he said.


https://learningenglish.voanews.com/a/china-planning-to-become-first-country-to-launch-digital-currency/5153511.html

The fact is that you can trust banks and if any problem happens, you can immediately go to the bank and solve it, and investing in cryptocurrency always leads to huge risks and if something happens, then no one will help you.

True. The banking system offers this benefit.
That's why I don't say to eliminate banks altogether.

What I don't like about banking is

1) they use my money (giving me 0, ..% interest rates  ), lending it out and feasting on it.

2) banks create currency out of thin air, through keys stroking, (it's called money multiplier), they lend it to you because you need it, but if you don't give it them back they will take your possessions from you.

3) the money you deposit in the bank becomes their money. It's no longer yours.

But that's just me 

I switched from buying and holding for some time and selling when I see fit. I don't know if that can be considered as a strategy.

For the purpose of this thread, it can   

I wasn't interested in sophisticated trading behaviour.
Just in behaviour.

I realised what a low level investor I am when I saw that after having bought something, even for the long run, I checked every 5 minutes how it went. 
Constantly wondering, should I exit or stay in?
Fear of having made a mistake on one side,
greed thinking about how much I could gain on the other side.

Needless to say, I jumped in and out constantly like the classic amateur.
Tons of transactions fees... If the broker had been honest, they had sent me at least a teddy bear for Christmast.

Quote from: owej90 on November 23, 2019, 09:56:17 AM

Gold has been proving for 5000 years now to be the most stable currency in the world.
Gold never go bankrupt
 

Gold is not a currency for calculation, moreover, it is not suitable for payment on the Internet, therefore stable cryptocurrencies are created for this, which are convenient for using as payment for goods on the Internet and for trading on crypto exchanges. Stable coins are created supported by gold, dollar, euro and other currencies, this is a convenient solution for use on the Internet.

You are right, as far as you are talking about pieces of metal.
You are not right, if you are talking about gold-backed cryptocurrencies 

Through gold-backed cryptocurrencies, gold becomes suitable both for payments on the Internet and for trading on crypto exchanges.

Quote from: mlawson71 on October 10, 2019, 05:58:12 PM

Do you think it will ever replace fiat currencies then?

I think it eventually will. Silver replaced gold, then IOU backed gold pieces of paper replaced silver, then the value of the state's IOUs replaced gold, why not bitcoin replace IOU's that aren't backed by anything?

Because those IOU's are legal tender and every economic system needs a legal tender.
It's not true that they aren't backed by anything. They are backed by the law.

The role of cryptocurrencies is not to replace the legal tenders, it's to add further options to them.
In order for Bitcoin to replace the legal tenders, you need a law - a constitutional law - declaring Bitcoin legal tender.
I don't think that's going to happen.

(Frankly, I even don't want that to happen. I want each country having its national currency, as part of their national identity.)

Besides, no business is going to accept as payment currencies that a month later could lose 30% of its value.
That would make every financial planning impossible. So, that business should convert their Bitcoins into another, more stable currency.
Before talking about Bitcoin as a potential currency you have to explain how to solve the volatility problem.

It could be so, but how can we be sure, that all those "stable coins" would stay stable? That they would not say oneday, that they are bankrupts and that's the end? Everyone can say, that his token is a stablecoin, but most can not work stable forever.

Gold has been proving for 5000 years now to be the most stable currency in the world.
Gold never goes bankrupt
 

I saw cryptocurrency in response to my dissatisfaction with the system used by the bank.

You are not alone on that

A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution.

This is the FIRST sentence of Nakamoto's Bitcoin: A Peer-to-Peer Electronic Cash System
Freeing people from financial institutions is the main reason of cryptocurrencies.


Nakamoto didn't talk only about banks. He talked about financial institutions in general, those who have the power to control your money, and with that your life.
Like Paypal for example.

Bitcoin is being championed as the solution to a new payment crisis affecting the adult entertainment website Pornhub. In a blog post on Nov. 14, Pornhub revealed that payment processor PayPal had abruptly stopped servicing its models.

Previously, models throughout the world received payouts via PayPal, which has not publicly stated why it cut them out of its platform.
“We are all devastated by PayPal's decision to stop payouts to over a hundred thousand performers who rely on them for their livelihoods,” the blog post reads.

The debacle is just the latest in a string of skittish moves from PayPal, which has become well known for its seemingly arbitrary account shutdowns.

In each case, Bitcoin proponents highlight the benefit of using censorship-resistant cryptocurrency instead. Bitcoin transactions cannot be canceled or denied by a third party since they are peer-to-peer.

Long live cryptos.
Long live PH performers.